Mohnish Pabrai Sold Alibaba To Buy Prosus (Tencent) | PRX, PROSY, PROSF Differences

Описание: Mohnish Pabrai explained in an interview why he sold Alibaba in order to buy Prosus/Tencent, which he called a better business than BABA. I also explain the differences I found between Prosus' ticker symbols: PRX, PROSY, and PROSF. Add me on Instagram: michellemarki

Timestamps:
0:00 Intro Alibaba vs. Tencent
1:41 Tencent Selling JD.com, Prosus To Get Dividends
3:03 Guy Spier & Mohnish Pabrai Bought Prosus
4:09 Why Mohnish Pabrai Sold Alibaba To Buy Prosus
6:36 Naspers' Spinoff Prosus' Portfolio
7:10 PRX, PROSY, PROSF - What's The Difference?
10:39 Fees To Buy/Own Prosus
11:31 How To Buy Prosus?
12:21 Superinvestors Who Own Prosus
13:56 Conclusion on Prosus

Throughout 2021, Charlie Munger and Mohnish Pabrai had been cheerleading Alibaba until Mohnish sold BABA in favor of buying Prosus to get an indirect stake in Tencent.

So it seems like a chasm is forming in the value investing world where shameless cloners are torn between following in the footsteps of Charlie and/or Mohnish.

Will Chinese big tech heavyweights Tencent and Alibaba duke it out to see which eventually ends up on top, just like Apple and Microsoft did to end up in the top two market cap positions?

Because Tencent is currently leading the way at only being down 37% compared to Alibaba being down 62% from their all time market cap highs.

Among the reasons that Tencent has been drawing attention, one is that they announced on 12/23/21 that they would divest a majority of their stake in JD.com, about $16.4 billion, and then distribute the proceeds as a dividend to their shareholders. With Prosus having a 31% stake in Tencent, that's going to be a big dividend payout to Prosus!

The Dutch Prosus is a spinoff from South African company Naspers, and IPO'd on 9/11/19. It seems like most (if not all) of the Tencent stake is with Prosus.

It's no wonder that Mohnish Pabrai and Guy Spier may have shamelessly cloned Charlie Munger in buying Alibaba in 2021. Recently we got confirmation that both Mohnish and Guy have bought Prosus.

The Everything Money channel had an interview with Mohnish in which he talked about why he sold Alibaba, and the main 2 reasons were: 1) tax loss harvesting, and 2) he decided Prosus and Tencent were better businesses than Alibaba, and Prosus was even better than Tencent.

It looks like Mohnish doesn't plan to buy Alibaba back. It's also something to investigate as to why neither Mohnish nor Guy wanted to buy Naspers.

Once upon a time, Naspers had invested $34 million into Tencent when it was still a startup in 2001. Prosus as a holding company has a bunch of other venture capital investments in addition to its Tencent stake.

PRX is Prosus' ticker symbol in the Euronext exchange in Amsterdam and Johannesburg Stock Exchange. But it seems like the main avenue if US investors want to buy Prosus might be through Over The Counter (OTC).

If Prosus' market cap is currently $170B USD (and this number seemed to vary across different sources), then Prosus' stake in Tencent is currently priced at about $179.4B based on Tencent's market cap. So Prosus might be trading at about $9.4B below its Tencent stake at the moment, which is a 5.2% discount and all of its other technology investments are free.

I learned that PROSY is a Sponsored Netherlands ADR from the Bank of New York Mellon, and it's a fractional share in the ratio of 5:1 where 5 PROSY shares equal 1 Prosus ordinary share.

There's also some fees associated with owning the PROSY. But it seems like PRX is the one that Mohnish and Guy likely own.

I share an example of searching for Prosus in Fidelity, but I only find PROSY and PROSF, not PRX. PROSY has much more trading volume than PROSF.

Looking into the institutional ownership of Prosus, I came across 3 superinvestors in Dataroma that included: Sequoia Fund, FPA Crescent Fund, and Clipper Fund.

Overall, it seems like PROSY is more accessible for American investors than maybe PRX. Let me know if you happened to buy any of the Prosus ticker symbols, or if you bought Tencent and what your rationale was.

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