Why Tencent Is a Better Buy Than Alibaba
The Chinese internet giants have been incredible wealth-creators over the past 20 years. Yet this summer, China's tech darlings fell hard -- as in more than 50% hard -- as the Communist Party's regulatory regime cracked down on the sector in a big way.
Now that these stocks are deeply discounted, some may view the sell-off as a golden buying opportunity. Count Warren Buffett's longtime business partner, Charlie Munger, as one of them, as Munger increased his massive bet on e-commerce leader Alibaba (NYSE: BABA) over the summer.
Alibaba has been a popular way for American investors to gain exposure to Chinese tech, but I'd argue Alibaba rival Tencent (OTC: TCEHY) is actually the better way to play a Chinese rebound, for the following reasons.
Source Fool.com
