📖Duan Yongping

Do the Right Things

🌿 Intermediate★★★★★

The most important thing is to do the right thing first, then do things right. Duan built BBK by focusing on the right products rather than competing on price Before optimizing, verify you're solving the right problem Strategic direction matters more than tactical execution Key insight: Duan emphasizes that strategic direction (choosing the right business, investment, or project) matters more than operational execution. Start with a minimal checklist: Can I explain this business simply?; Do I truly understand how it makes money?; Could I explain it to someone with no background?.

  • Can I explain this business simply?
  • Do I truly understand how it makes money?
  • Could I explain it to someone with no background?
  • Invest only in what you understand deeply

Avoid misuse: Having opinions without execution criteria

💬

The most important thing is to do the right thing, then do things right. Many people focus on efficiency while doing the wrong thing. First make sure you're on the right path.

— Duan Yongping Blog Posts，2010

🏠 Everyday Analogy

Imagine farming: instead of scattering seeds randomly on rocky ground, you first study the land, choose the most fertile plot, plant the best seeds, and then water patiently. Doing the right things means selecting that one good field and crop before working hard, rather than blindly toiling on barren land.

📖 Core Interpretation

Strategic direction matters more than tactical execution
💎 Key Insight：Duan emphasizes that strategic direction (choosing the right business, investment, or project) matters more than operational execution. Even perfect execution of the wrong strategy leads nowhere. Investors must first identify fundamentally sound, valuable opportunities with durable competitive advantages. Only after ensuring the "what" is right should they focus on the "how." This requires deep thinking before acting.

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❓ Why It Matters

Duan built BBK by focusing on the right products rather than competing on price

🎯 How to Practice

Before optimizing, verify you're solving the right problem

🎙️ Master's Voice

Invest in companies you understand. If you cannot explain it simply, you do not understand it well enough.
Duan Yongping, founder of BBK Electronics and successful investor, emphasizes deep understanding before investing. His investments in Apple and others came from truly understanding their business models.

⚔️ Practical Guide

✅ Decision Checklist

  • Can I explain this business simply?
  • Do I truly understand how it makes money?
  • Could I explain it to someone with no background?

📋 Action Steps

  1. Invest only in what you understand deeply
  2. Test understanding by explaining simply
  3. Avoid investments you cannot explain

🚨 Warning Signs

  • Investing in complex businesses you do not understand
  • Unable to explain your investments simply
  • Relying on others' understanding

⚠️ Common Pitfalls

✕Having opinions without execution criteria
✕Reviewing outcomes but not decisions
✕Abandoning rules during volatility spikes

📚 Case Studies

1
Investing in NetEase (1995)
Duan Yongping invested early in NetEase after leaving BBK, recognizing its potential in China’s emerging internet sector.
✨ Outcome：Held long term; investment multiplied many times as NetEase became a leading Chinese internet company.
2
Charity Lunch with Buffett (2006)
Paid over USD 600,000 for a charity lunch with Warren Buffett to learn value investing and long-term thinking.
✨ Outcome：Reinforced focus on intrinsic value, circle of competence, and doing the right things over chasing short-term gains.

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