Our story today about Tencent’s enormous investment gains points to a path not taken by the U.S. tech giants in deploying their vast cash resources. The article revealed that Tencent has built up an investment portfolio of stakes in nearly 1,200 companies, the vast majority of which are privately held. Can you imagine the political reaction if Apple, Alphabet, Facebook or Microsoft deployed their billions into an investment ecosystem on that scale?

As the article recounts, Tencent typically invests in private startups whose products or services complement Tencent’s business. And it rarely sells, which means it ends up with hugely valuable stakes in companies like Meituan and even some U.S. companies such as Snap. It’s a winning strategy both financially and strategically. It’s not one U.S. companies could likely follow, given the perception they are already too powerful.