$TENCENT(00700.HK)

My conviction in Tencent began in early May 2026 after analysing into their financial health. The company’s key metrics align perfectly aligned with Warren Buffett’s investment requirements, strong pricing power and exceptional management.

I am currently holding 100 shares, purchased just before the 1Q 2026 earnings announcement. That decision has already been validated as the latest results prove the engine.

1. Steady Growth & AI Scaling: Revenue hit RMB 196.5 billion (up 9% YoY). Their Hunyuan 3 (Hy3) AI model is now a global top-performer, and WorkBuddy has become China’s leading productivity AI agent—turning AI hype into real-world utility.

2. Profit Machine: Net profit surged 21% to RMB 58.1 billion. Despite heavy AI R&D, efficiency is soaring, with gross margins climbing to 57% driven by high-margin ad and gaming revenue.

3. Aggressive Buybacks: Following the May 2026 AGM, management is repurchasing roughly HK$500 million in shares daily. This HK$100B+ buyback program creates a massive floor for the stock.

4. Gaming Rebound: International gaming grew 13%, while flagship domestic titles hit record engagement levels this past quarter.

With rock solid earnings, strong fundamentals and massive shareholder returns, i have no regret even if the price is trading lower now. I am comfortably committed to this long-term hold. 😉 😘