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Have Tencent Shares Bottomed Out After Losing $150B This Year?



Tencent [TCEHY] investors have had a rough year so far as shares of China’s internet giant have declined close to 30% this year. The stock has declined due to the trade wars between China and the United States, declining margins and gaming regulations.

China is the biggest gaming market in the world and Tencent is the largest gaming company. So are these fears overblown? Have Tencent shares bottomed out? Is there significant upside potential for Tencent investors?

Gaming regulations

Chinese government departments approve video game licenses. However, certain departments are in a restructuring phase according to this Bloomberg report. This has led to a temporary freeze in gaming approvals.

The report states that while the National Radio and TV Administration has not issued licenses for 4 months now, the Ministry of Culture and Tourism has made registering games difficult.

Government interference and regulations are a part and parcel of the Chinese markets. There is always a potential risk of uncertainty for investors here. Tencent is yet to receive the necessary approvals for the new genre of gaming that has taken the world by storm – the battle royale.

Games such as Fortnite and PUBG have gained immense popularity and impacted stocks of top gaming companies such as Activision Blizzard [ATVI] and Electronic Arts [EA]. Further, Tencent was asked to recall one of its highly anticipated games – Monster Hunter: World just a few days after it debuted.

The game was pulled out after people raised objections to its content. Tencent is not concerned over this delay and expects the regulatory issues to be resolved quickly.

Trade war fears

The ongoing trade wars between China and the United States have driven several Chinese and domestic stocks lower. The two governments have been battling out since the start of 2018 and this is unlikely to abate in the near future.

However, such a reaction to the trade wars does not make sense, especially for Tencent as it generates almost 96% of revenue from domestic markets.

Declining margins

In Q2 2018, Tencent’s operating profits rose 11% year-over-year driven by a 30% rise in sales. However, the company’s operating margin fell to 30% from 35%. Profit margins were impacted due to the ongoing gaming ban. Tencent is unable to monetize two of its key video games.

The Chinese government is also increasing regulations on digital payment products.

Is Tencent’s growth story over?

The answer is NO. Despite these headwinds analysts expect Tencent’s sales to rise 29% to a whopping $78B in 2020. Tencent also owns China’s most popular messaging app known as WeChat. This is similar to WhatsApp and has over a billion users.

Its growing ecosystem of Mini Programs (these are apps that are a part of the core application) makes the WeChat platform more powerful. Mini-programs include a scan-to-buy function used by retailers, a pre-ordering restaurant app and a transport payment solution.

WeChat also has a digital payment system known as WeChat Pay and can be accessed by third-party apps as well as physical retail stores.

Once the regulatory issues are sorted, Tencent shares will continue to move higher driven by a growing gaming market. Don’t forget Tencent has generated absolute returns of a monstrous 34000% since 2004.


How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀



I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

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How I run a $300M+ business from the beach…(and how you can TOO!)



Yes, you read that right.

If there’s anything the pandemic taught us, it’s that the paradigm of “office” and “workspace” has been shaken to its CORE.

Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run from…wherever. 📲

This is my office for the day…

I am actually running our business from the beach, typing this from here.

It’s 4:28 pm CET, which means it’s 10:28 am EST and I am CRUSHING my to-do list.

(And the team will continue to crush it while I’m asleep. That’s the 🗝)

So how did we get here? 

We launched NYCE and our mission to create 100,000 millionaires in March, 2020…just as the global COVID-19 lockdown happened. 😳

As a result, we shut down our main office and set EVERYTHING up to run remotely…

SMOOTHLY! And a system that allows us to outperform competition by 200%. (You can build this system, too. More on this in a second.)

Here’s what we were able to do since then:

  • Gained 6M+ followers across all platforms 📈
  • Add 1500+ new apartments to the portfolio 🤑
  • Grow to $300M in real estate 🚀
  • 105% investor returns 🎉
  • 700K+ community members 🤝

And here’s the best part…

Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.

This means we get 3x the productivity of a similar company. 🔥

Let me repeat that…3x PRODUCTIVITY vs. our competitors.

Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.

There is ALWAYS someone senior awake. It could be Martin in Barcelona…Nat in New York…Vineet & Arif in New Delhi.

All the while giving YOU GUYS wealth hacks and daily content. 🔥

OK, so how can you do it?!

Well, the first step is to have an actual side hustle you’re launching. Not just an idea, a validated business.

MAJOR KEY: Do NOT spend money until you’ve made your FIRST DOLLAR! 🗝🗝🗝🗝

(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)

One of the easiest ways to start is with Airbnb—you can start that in 10 minutes. Literally. (Here’s a guide if you need it.)

Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.

I’m gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. 💵 💎

From what software to use, how to build a team, how to keep.

In the meantime, drop a comment if you’re ready to build some wealth and any questions if you want more…

Let’s get to work. 🙌

PS: If you can’t be bothered with video and just wanna get to work, we’re hosting a TRIBE U workshop that will help you get this process started on the spot. It’s $479 $49. 🔥

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CHART: How Blockchain Powers Bitcoin



Blockchain, Bitcoin. Bitcoin, blockchain.

The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.

But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.

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