Duan Yongping expressed his views on various aspects such as investment, corporate culture, corporate management, companies, and children's education.
This is a rare video interview of Duan Yongping more than 20 years after his "retirement" from BBK.
In the first episode of the third season of the professional dialogue program "Strategy," produced by Xueqiu, Xueqiu founder Fang Sanwen and Duan Yongping engaged in a rare intellectual exchange on investment philosophy, corporate culture, and long-termism.
In the two-hour interview, Duan Yongping shared his insights on investment, corporate culture, corporate management, companies, and children's education. The following content is an excerpt from the full text, highlighting 50 key points for your reading.
01
On Investment
Cheap things can become cheaper.
Staying rational is a very difficult thing.
If you really know how to invest, you don’t need any advice; you just need to buy the companies you think are good and hold on to them.
People care about what we have done; in fact, a big reason we are who we are is because of the things we choose not to do.
Investment is interesting; not understanding it doesn’t mean you can’t make money.
If you can’t withstand a 50% drop in a stock, you shouldn’t buy it.
In the era of AI investment, those who think they can make money by looking at charts and lines are just naive investors.
The probability of making mistakes is about the same for everyone; it’s just that some people don’t make the same mistake repeatedly.
Buffett's margin of safety doesn’t refer to being cheap; it refers to how well you understand the company.
The saying "buying stocks is buying companies" is understood by only about 1% of people, and actually doing it is even harder.
Why is investing said to be simple but not easy? It’s simple because you must look at the company, understand the business, and comprehend future cash flows; it’s difficult because most companies are not easy to understand.
Making money in stock trading is very difficult; about 80% of retail investors lose money in both bull and bear markets, so don’t think you are the special one.
Coming from a business background, I find it relatively easy to understand others' businesses, but I still can’t understand too many businesses.
Why can you hold on for so long and make so much money without selling? The truth is that money isn’t that much.
Is copying homework a sustainable investment method? It’s hard because copying homework puts you at a lag.
02
On Corporate Culture
Corporate culture is greatly related to the founder; you need to find those who resonate with you and your culture.
Much of our culture has evolved over time; our "not-to-do list" has been added one item at a time, and we learn what not to do through many painful lessons.
"Doing the right thing and doing things right" clearly distinguishes right from wrong… If something feels wrong, we can easily stop; if you only consider whether there’s money to be made, you’ll find it very complicated.
What you say is what you mean, so everyone feels at ease, and there is a high level of trust… The bonuses employees receive are what they deserve. When we distribute bonuses, if someone says "thank you, boss," I say that’s inappropriate because it’s a contractual bonus; you don’t need to thank me.
We have two types of people: one is like-minded individuals, and the other is fellow travelers. If they resonate with you, even if they don’t fully understand, they will do as you say.
A good culture ultimately leads back to the right path, guided by a North Star, determining what it should do. It’s not just about business; discussing business alone can easily lead to mistakes.
03
On Corporate Management
Jobs told Tim Cook that as CEO, you make decisions; don’t think about what Jobs would do; that’s the right approach.
(Regarding partners) I trust them a lot; I think that’s very important, and I’m not afraid of them making mistakes.
The president of Panasonic told me: when I make a decision, I think about what Mr. Matsushita would think standing behind me, and I think, "Oh no."
I have a habit of quickly leaving when I encounter something inappropriate.
Your eyes should be on the users; their eyes are looking in the rearview mirror.
It’s hard for founders to leave the company; not many people can do that. Why is it hard? Because they don’t want to.
I don’t think age is necessarily a barrier; Buffett is over 90 and still doing well. He just enjoys doing this, so he keeps doing it.
On Children's Education and Growth
Everything parents do is to provide children with a sense of security.
I don’t demand from my children what I can’t achieve myself.
Children will always have their tempers, and they can express their emotions in their own way at certain moments.
It’s important to set boundaries and tell them what they cannot do, rather than just scolding them every day.
Providing children with a sense of security is crucial; without it, it’s hard for people to be rational.
The main thing learned in college is how to learn, how to study, and building confidence that you can learn when you encounter something you don’t understand.
Everything parents do for their children is actually teaching them how to do things. If you scold them, you’re teaching them to scold; if you hit them, you’re teaching them that it’s okay to hit others; if you lose your temper with them, you’re showing them it’s okay to lose their temper; if you treat them well, you’re teaching them to treat others well.
Doing exercises is indeed helpful, but not everyone will grasp it; you need to find methods from it and identify the reasons from your mistakes to learn the entire logic.
04
On Understanding a Company
I usually tell everyone I only have three stocks: Apple, Tencent, and Moutai; it’s pretty much true.
When Apple finds that a product cannot provide enough value to users, they won’t pursue it; they won’t do it for business reasons; that’s their culture.
What do you think of Apple’s current price? It’s not cheap, but I don’t know if Apple will develop further; where will AI ultimately land? Isn’t it still on phones? It’s possible that Apple could double or triple in the future, but I don’t know.
I think Apple has a great corporate culture. They care a lot about doing things well and about user experience.
Over a decade ago, there was talk everywhere about Apple releasing an Apple car; I said they would never have an electric vehicle. What can they really do? Do they have enough differentiation? That’s where I understand Apple better than most.
I don’t know how much AI will replace search, but overall, I think Google is still quite good.
I watched many videos of Jensen Huang; I admire him. What he said over a decade ago is the same as what he says today; he saw it early and has been working in that direction.
I actually knew about TSMC early on, but I thought this industry was too asset-heavy; now I realize that in the rise of semiconductor AI, it seems no one can escape TSMC; it has outperformed everyone.
I think it’s at least worth getting involved in AI; it would be inappropriate to completely miss out.
The electric vehicle business won’t be very good; it will be exhausting, and the differentiation is minimal.
There are two types of liquor: Moutai and others.
The most important thing for Moutai is whether it has a culture that can sustain it. Your core is Moutai’s unique flavor and the recognition of that unique flavor by its target consumers.
When Moutai was at 2600 or 2700 yuan, I thought about selling; after selling, what would I buy? Those who sold lost even more, didn’t they? Because they bought something else.
Based on today’s perspective, I wouldn’t invest in General Electric; its business model isn’t good. I wasn’t at the level I am now back then.
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