📖Duan Yongping
Understand Before Investing
Only invest in what you can explain simply.
Never invest in a business you cannot explain in simple terms. If you can't describe why a company is valuable, you don't understand it well enough to own it.
🏠 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：Simplicity of explanation tests depth of understanding.
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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
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.
2
Investment in NetEase (2005)
Duan Yongping recognized NetEase’s strong gaming ecosystem and loyal user base as a durable moat and invested heavily when the market doubted its sustainability.
✨ Outcome：NetEase’s profits and market share grew significantly, and the stock multiplied over the next decade.
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