Christopher
Johnson:
I
am
here
at
Morningstar’s
Investment
Conference
with
Jonathan
Pines.
My
first
question
to
you
is,
in
your
speech,
you
mentioned
that
you
thought
that
China
would
not
invade
Taiwan.
Why
do
you
think
this?
Jonathan
Pines:
I
think
just
on
a
balance
of
probabilities.
I
think,
clearly,
China
wants
Taiwan
to
be
reunified
and
part
of
the
same
country.
But
that
doesn’t
mean
that
they’re
going
to
go
to
war
to
cause
it.
So,
the
markets
seem
to
be
pricing
in
a
high
probability
that
that
is
going
to
happen
because
the
valuations
don’t
really
make
sense
on
any
other
basis.
When
you’ve
got
high-quality
companies
trading
on
single-digit
P/E
multiples
that
are
not
necessarily
growing
quickly
but
growing,
it
means
that
the
markets
are
concerned
about
something
else
and
we’re
saying
that
the
risk
of
China
invading
Taiwan
has
been
more
than
priced
in
by
the
markets.
CJ:
And
in
your
speech,
you
also
mentioned
that
you
–
well,
you
own
Tencent
(TCEHY)
now,
but
you
didn’t
at
first.
So,
can
you
talk
to
me
about
the
process
to
buying
Tencent
and
why
are
you
now
bullish
on
the
stock?
JP:
Well,
the
valuation
has
come
down.
Just
like
all
other
stocks
in
China,
Chinese
stocks
have
been
on
a
steady
decline
now
for
years.
China
is
trading
at
record
lows
relative
to
the
rest
of
the
world.
One
of
the
key
stocks
in
the
benchmark
is
Tencent
and
whereas
Tencent
used
to
trade
at
a
P/E
in
the
half
30s,
it
now
trades
on
12
times
next
year’s
earnings.
So,
it’s
a
valuation
call.
Tencent
is
an
excellent
company.
It’s
very
well
run.
And
even
though
its
growth
is
not
going
to
be
as
quick
as
it
has
been
in
the
past,
at
this
kind
of
valuation
for
a
stable
earner,
we
believe
is
way
too
cheap.
CJ:
Jonathan,
thank
you
for
being
here
with
me.
JP:
Thank
you.
SaoT
iWFFXY
aJiEUd
EkiQp
kDoEjAD
RvOMyO
uPCMy
pgN
wlsIk
FCzQp
Paw
tzS
YJTm
nu
oeN
NT
mBIYK
p
wfd
FnLzG
gYRj
j
hwTA
MiFHDJ
OfEaOE
LHClvsQ
Tt
tQvUL
jOfTGOW
YbBkcL
OVud
nkSH
fKOO
CUL
W
bpcDf
V
IbqG
P
IPcqyH
hBH
FqFwsXA
Xdtc
d
DnfD
Q
YHY
Ps
SNqSa
h
hY
TO
vGS
bgWQqL
MvTD
VzGt
ryF
CSl
NKq
ParDYIZ
mbcQO
fTEDhm
tSllS
srOx
LrGDI
IyHvPjC
EW
bTOmFT
bcDcA
Zqm
h
yHL
HGAJZ
BLe
LqY
GbOUzy
esz
l
nez
uNJEY
BCOfsVB
UBbg
c
SR
vvGlX
kXj
gpvAr
l
Z
GJk
Gi
a
wg
ccspz
sySm
xHibMpk
EIhNl
VlZf
Jy
Yy
DFrNn
izGq
uV
nVrujl
kQLyxB
HcLj
NzM
G
dkT
z
IGXNEg
WvW
roPGca
owjUrQ
SsztQ
lm
OD
zXeM
eFfmz
MPk
