I've been thinking a lot about how to identify truly good businesses, you know? Duan Yongping has a pretty interesting approach to this. He looks at the business model as the first filter, and it makes a lot of sense.

For him, a good business needs to generate abundant free cash flow over the long term, something that's hard to copy. Basically, those money-printing machines that every investor seeks.

The criteria Duan Yongping uses are very practical. First, you want a business that consistently generates substantial profits, where net cash flow tracks profit. Because in the end, buying a company is buying future cash flow.

Next is the competitive moat. A differentiated product that users can't live without. Duan Yongping is clear on this: real profits come from lack of competition, not from price wars. If you lack differentiation, you basically don't have a good model.

The third point is interesting: asset-light businesses with high profitability. You don't want a business that constantly needs to pour money into capital. The best ones generate high returns without that dependency.

There's also the issue of resilience. A good model doesn't easily fall apart with technological changes, political shocks, or shifting consumer preferences. That metaphor of 'long slope and thick snow' describes it well: a long industry lifecycle with abundant profits.

And finally, pricing power. Apple can raise prices without losing customers. Moutai too. This comes from irreplaceable value, not from a monopolistic position. Those who have this truly have a real business.

Duan Yongping's logic makes sense: these criteria separate truly good businesses from those that only seem good on the surface. It's worth using as a filter.