Duan Yongping's Q1 2026 portfolio is out! This time, the adjustments are quite aggressive, let's break it down and discuss, especially Duan's options strategy, which is really worth learning about. 🧐

As of March 31, 2026, the total market value is approximately $20 billion. Let’s see what Duan has done this quarter.

📊 First, let's look at the biggest changes:

• Apple: From 50.30% drastically reduced to 36.72%, a decrease of 13.6 percentage points! Market value $7.35 billion, still the largest holding.

• Berkshire Hathaway: From 20.63% slightly increased to 21.91%, market value $4.38 billion, a solid cornerstone.

• Nvidia: From 7.72% skyrocketed to 12.07%, an increase of 4.35 percentage points! Market value $2.41 billion, this is the highlight.

• Pinduoduo: From 7.48% increased to 10.09%, continuing to add to the position. Market value $2.02 billion.

• Google: From 3.33% increased to 5.31%, steadily adding to the position. Market value $1.06 billion.

• Tesla: From 0% new position established to 6.34%! Market value $1.27 billion, a brand-new holding.

• Circle: From 0% new position established to 0.1%! Market value $1.908 million, a brand-new holding.

🚨 Liquidations and substantial reductions:

• Alibaba: Completely liquidated, from 2.15% to 0%.

• TSMC: From 2.13% cut down to 0.26%, nearly liquidated.

• ASML: From 0.06% to zero.

• Corewave, Microsoft, etc. have all been reduced to varying degrees.

🧐 Interpretation of Duan's investment style and strategy:

1️⃣ Options strategy taken to the extreme

Duan's greatest strength is not his stock holdings, but his options strategy.

Why did he reduce his stake in Apple so much? It’s not that he is not optimistic, but he loves to sell Covered Calls too much. For such a quality stock that steadily rises every year, Duan continuously sells out-of-the-money call options to earn premiums. If the stock rises, it gets exercised and sold at a high price; if the stock does not rise, he still earns the premium.

You see, Apple dropped from 50% to 37%, mostly being called away at a high price. I estimate this operation makes several million dollars in premiums annually, something we might not earn even if we work our whole lives.

Why did he increase his stake in Nvidia so aggressively? I estimate it’s all from selling puts to buy back shares. Duan sees the long-term value of Nvidia but does not chase the price. So what does he do? He sells out-of-the-money puts, waiting for a market correction. When it corrects, he can buy the shares at a low price; if it does not correct, he still earns the premium.

Just think about it, the increase from 7.7% to 12% in Nvidia, the additional over 4 percentage points all came from selling puts to buy back shares, costing significantly less than the market price, plus earning additional put premiums, and then being able to sell covered calls afterward; what an incredible return can be achieved from this combination?

Tesla is similar; from 0% position established to 6.3%, it is also likely from selling puts to buy back shares. Tesla is a laggard among M7 stocks, and Duan might feel there is a safety margin, thus selling puts while waiting for the opportunity.

2️⃣ Concentrated holdings + dynamic rebalancing

Duan’s holdings are highly concentrated, with the top five positions accounting for over 86%:

• Apple 36.72%

• Berkshire Hathaway 21.91%

• Nvidia 12.07%

• Pinduoduo 10.09%

• Tesla 6.34%

This level of concentration shows Duan’s extreme confidence in his own judgment. But notice, he does not just hold on blindly; he adjusts dynamically. If Apple rises too much and its share becomes too high, he reduces his holdings through Covered Calls; for promising stocks like Nvidia and Google, he continues to add to his positions.

This is a typical value investing and dynamic rebalancing strategy.

3️⃣ Firmly optimistic about tech giants, but selective

Duan’s heavy holdings are all tech giants or tech-related:

• Apple: consumer electronics + ecosystem

• Nvidia: AI computing power

• Google: search + AI

• Tesla: electric vehicles + AI robots

• Berkshire Hathaway: diversified allocation

But notice, Microsoft was reduced from 2.38% to 1.88%, indicating Duan might have reservations about Microsoft's AI prospects. Alibaba was completely liquidated, and TSMC was significantly reduced, suggesting Duan is not optimistic about Chinese concept stocks and semiconductor equipment stocks.

4️⃣ Value investing + down-to-earth mindset

Pinduoduo increased from 7.48% to 10.09%, and Duan continues to add to it. Although Pinduoduo’s stock performance has been average over the last two years, Duan firmly believes in the company’s long-term value, continuing to add to his position. This is a typical value investing mindset, not chasing highs and cutting losses, but sticking to quality companies.

Berkshire is the same, with a 21.91% allocation remaining unchanged. Buffett's Berkshire Hathaway is Duan’s cornerstone, remaining there regardless of market fluctuations.

5️⃣ Liquidating Chinese concept stocks, going all in on US stocks

Alibaba's liquidation and TSMC's significant reduction indicate that Duan is not optimistic about Chinese concept stocks and non-US markets. Duan's holdings are almost all US stocks, demonstrating his firm optimism about American tech dominance and dollar assets.

💡 The core logic of Duan's strategy:

• High Sharpe ratio: Through his options strategy, he significantly increases returns without adding risk. Just think about it, selling Covered Calls and Puts not only lowers holding costs but also earns premiums while remaining calm in market fluctuations. The Sharpe ratio of this strategy is definitely at a top market level.

• No defeat: Duan’s holdings are all quality companies which, in the long term, are all upward. The options strategy is just the icing on the cake; even without trading options, long-term holding can also earn money. But with the options strategy, both returns and risk control capabilities are elevated to a new level.

• Suitable for large funds: Duan's strategy is particularly suited for large fund management. Small funds may not be as flexible, but large funds, through options strategies, can achieve more efficient capital utilization and risk management.

🎯 Insights and references for us:

• Options are not gambling; they are risk management tools. Duan's options strategy is not speculation, but a systematic profit enhancement and risk control.

• Concentrated holdings + dynamic rebalancing. Do not overly diversify, focus on the targets you are most optimistic about but adjust dynamically to maintain balance in the portfolio.

• Value investing + long-termism. Duan's holdings are all quality companies, held for the long term, without chasing highs and cutting losses.

• High Beta stocks are suitable for options. High-volatility stocks like Nvidia and Tesla are best for options strategies, where premium income can be very considerable.

In summary: Duan Yongping's adjustments in Q1 2026 focus on enhancing returns and dynamic rebalancing through options strategies. Reduced holdings in Apple (Covered Call was exercised), significantly increased holdings in Nvidia (bought back through Put sales), established new position in Tesla (buying back through Put sales), liquidated Chinese concept stocks (Alibaba, TSMC), and continued to add to Pinduoduo and Google.

The essence of this strategy lies in: using options to lower costs, enhance returns, manage risk, while adhering to quality companies and holding them long-term. This is the true operation of smart money.

Here’s a reminder to all fans, Duan's 13F only discloses US stock holdings, with Hong Kong and A-shares not disclosed, so we can only see the tip of the iceberg. But this glimpse is already fascinating and worth our serious study. 🙏

DYOR, options involve risks, invest carefully! 🧐

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