📖Duan Yongping
Quality at a Fair Price
Seek quality businesses at fair prices.
The ideal investment is a high-quality business purchased at a fair price. Quality compounds wealth; fair prices protect capital.
🏠 Everyday Analogy
📖 Core Interpretation
Duan Yongping emphasizes durable business quality over short-term noise. A strong model, real competitive edge, and disciplined capital allocation matter more than quarterly excitement.
💎 Key Insight：Quality and fair price together create optimal investments.
AI Deep Analysis
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❓ Why It Matters
Without business-quality filters, investors drift toward stories rather than economics. Durable cash generation is what supports long-term valuation.
🎯 How to Practice
Use a checklist covering moat, management, unit economics, and capital allocation; track long-term cash generation instead of quarter-to-quarter noise.
⚠️ Common Pitfalls
Buying narratives instead of cash-generating economics
Overreacting to short-term operating noise
Ignoring management quality and capital allocation
📚 Case Studies
1
NetEase Leadership Transition (2006)
Duan Yongping invested in NetEase, emphasizing Ding Lei’s integrity and long-term focus despite gaming regulatory uncertainty and past accounting concerns.
✨ Outcome：Management’s prudent capital allocation and product focus drove strong earnings growth and multibagger returns over the following decade.
2
BYD Executive Discipline (2010)
Duan Yongping sold or avoided BYD after observing governance and execution issues despite Warren Buffett’s investment and EV growth potential.
✨ Outcome：BYD stock became highly volatile; uneven profitability and governance worries validated Duan’s emphasis on management quality over popular narratives.
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