Recently, I had the opportunity to deeply consider one of the most talked-about figures in China's investment world, Duan Yongping. Understanding the investment strategy of this person, often called the "Chinese Buffett," truly changes the way you view the market.

Looking at Duan Yongping's career, it is truly legendary. In 1988, at just 28 years old, he took over a small factory with over 2 million yuan in losses and rapidly grew its annual output value to about 10 billion yuan within a few years. Later, he separated from Yihua Group to establish BBK, and won the "Standard King" title on CCTV advertising for two consecutive years. He built this into an industry giant. In 1999, he split BBK into three businesses, creating the two major smartphone brands OPPO and vivo. At age 40, Duan Yongping stepped away from corporate management, moved to the United States, and fully transitioned into investment activities. He is now said to have assets exceeding 30 billion dollars.

What is particularly interesting is his experience of having lunch with Warren Buffett in 2006. Duan Yongping recommended Apple to Buffett, stating that its business model is superior to Coca-Cola’s. Subsequently, Buffett bought a large amount of Apple stock. This is where the really important point begins.

Looking at Duan Yongping’s successful investment cases, the consistency of his thinking becomes apparent. In his investment in NetEase, he boldly invested when the stock price plummeted to $0.8 per share due to litigation issues, ultimately achieving about 68 times return. Regarding Apple, he began large-scale purchases when its market cap was less than $300 billion in 2011, and by the end of 2024, his holdings were valued at $10.23B, accounting for 70.50% of his total position.

His attitude toward Guizhou Moutai is also unique. Duan Yongping regards Moutai as a "long-term bond," believing its intrinsic value remains stable. He has held it for ten years without ever selling. In August 2024, during PinDuoDuo’s stock price crash, he actively built positions by selling put options and added 3.8 million shares in the third quarter. Regarding Tencent, he bought multiple times during its downturn from 2022 to 2023, and now considers the current stock price a good timing for "insurance expansion."

Duan Yongping’s ten investment principles are truly practical. First, "fish where there are fish" emphasizes the importance of choosing the right market. The reality that Chinese A-shares have hovered around 3,000 points for over a decade while U.S. stocks have risen for 20 years explains why Duan shifted his focus to the U.S. market.

Next is the idea of "select stocks in one year, hold them for ten years." Duan Yongping has two accounts—one for value investing and one for speculation. In his value account, he has held Apple for 14 years without ever selling. Meanwhile, the gains from his speculative account are only small profits. This contrast says everything.

The advice to "reduce investment decisions" is also crucial. Making 20 decisions a year guarantees mistakes. In fact, Duan Yongping states that making only 20 investment decisions in a lifetime is enough. There are no shortcuts in investing; if someone thinks there are shortcuts, they will still be searching for them 20 years later.

"Buy where no one is paying attention, sell when others are busy" is an approach Duan Yongping practiced with NetEase. When asked why he dared to buy NetEase, he replied, "If you’re selling something worth 10 yuan for 1 yuan, what courage do you need?" At that time, NetEase’s cash per share was 4 yuan, but the stock price had fallen to 1 yuan.

Duan Yongping also emphasizes that "A-shares are not gambling. The real profit-makers in A-shares are value investors." The Moutai he invested in has remained untouched for over a decade. The last principle is "believe in fate." Human nature cannot be changed; speculators remain speculators, but those who agree with value investing can change into such people. This is why he dines with Buffett, he says.

Honestly, truly understanding Duan Yongping’s investment philosophy fundamentally changes your view of the market. Long-term perspective, correct market selection, and unwavering conviction are the essence of his success. If you feel inspired, try applying this way of thinking to your own investment activities.