I recently reviewed Duan Yongping's career, and honestly, it's one of those stories that makes you completely rethink how to invest. This guy went from managing a small factory with multimillion-dollar losses in 1988 to becoming one of the most respected investors in the world. It's no coincidence; he has a very clear philosophy.

Duan Yongping's entrepreneurial journey is almost like a movie. At 28, he took control of a failing factory, completely restructured it, and within a few years, its output value soared to nearly 1 billion yuan. He then founded BuBuGao, which became a giant with over 10 billion in annual production. But what's interesting is that at 40, he decided to retire at the right time. He moved to the United States and started his investment career, where he truly shined.

In 2006, he achieved something historic: paid $620,100 to have lunch with Buffett and became the first Chinese investor to do so. During that lunch, he recommended to Buffett that he invest in Apple. Buffett took his advice, and Duan Yongping was also deeply influenced by Buffett's value investing philosophy, which he has practiced ever since.

Let's see how this guy invests. With NetEase, he was ruthless: in 2001, when the company was facing litigation and the stock was at $0.8, Duan Yongping invested without hesitation. His $2 million investment turned into over $100 million. He started accumulating Apple shares in 2011 when the market cap was less than $300 billion. Today, it makes up 70% of his U.S. portfolio. With Moutai, he has almost his entire account in yuan, considering it a 'long-term bond' because its intrinsic value is solid; only the price fluctuates. In 2024, when Pinduoduo fell after weak results, Duan Yongping actively bought. And with Tencent, he has been buying during the dips of 2022-2023, considering the price a good opportunity.

Now, what are his core principles? First: go fishing where there are fish. The A-share market has been around 3,000 points for over ten years, while U.S. stocks have risen for 20 years. Choosing the right direction matters more than effort. Second: pick well and be friends with time. Duan Yongping says if you can't hold a stock for 10 years, don't buy it even for a second. Third: buying stocks is buying companies. If they have good products, a solid business model, and a visionary founder, why be afraid?

Fourth: investing requires genuine faith. Duan Yongping maintains two accounts: one for value investing where he holds stocks like Apple for 14 years without selling, and another speculative one where he admits he only made a little money. Fifth: there are no shortcuts. If you seek shortcuts like speculation, you'll keep looking for them for another 20 years. Sixth: reduce decisions. Don’t make 20 decisions in a year because you'll make mistakes. Making 20 decisions over a lifetime is enough. Seventh: if you're not making money, reflect on your strategy. Speculation doesn't improve even if you perfect your technique.

Eighth: buy where no one is looking, sell where everyone is watching. When asked why he had the courage to buy NetEase, he replied: if someone sells you something worth 10 yuan for 1 yuan, what courage do you need? NetEase had 4 yuan in cash per share but was trading at 1 yuan. Ninth: the A-market is not a game for fools. The true winners are value investors, like Duan Yongping with Moutai, which he hasn't touched in over ten years. Tenth: believe in destiny; eventually, you become the person you want to be. Human nature doesn't change. If you're a speculator, you'll keep being one. If you believe in value investing, you'll become that.

This is why Duan Yongping wanted to have lunch with Buffett: both practice value investing and both achieve results. The lesson is clear: patience, discipline, and faith in long-term value are what separate real winners from speculators.