Duan Yongping
Duan Yongping🛡 Risk Management

Duan Yongping's Risk Management Rules

Duan Yongping (born March 10, 1961) is a Chinese-American entrepreneur and investor, often called "China's Warren Buffett." He founded BBK Electronics, which later spawned several highly successful smartphone brands including OPPO, Vivo, and OnePlus. After selling his stake in BBK and retiring from active management in 2001, Duan became a full-time investor. He gained widespread attention in 2006 when he...

3 principles·Risk Management

3 Key Risk Management Principles

#1

Concentrate Your Portfolio

"If you truly understand a business and it's undervalued, why diversify? Concentration in your best ideas maximizes returns. Diversification is protection against ignorance."

If you truly understand and it is undervalued, why diversify? Concentrate.

🌿 Intermediate★★★★★
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#2

Avoid Leverage

"Never use leverage in investing. Leverage can turn temporary setbacks into permanent capital loss. The tortoise beats the hare by staying in the race."

Never use leverage; it turns temporary setbacks into permanent capital loss.

🌱 Beginner★★★★★
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#3

Risk-First Approach

"Before considering how much you can make, consider how much you can lose. Risk management is not about avoiding risk entirely, but about understanding and controlling it."

Consider the downside before the upside.

🌿 Intermediate★★★★★
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Frequently Asked Questions

What are Duan Yongping's key risk management principles?

Duan Yongping has 3 key principles on risk management. The most important one is "Concentrate Your Portfolio" — If you truly understand a business and it's undervalued, why diversify? Concentration in your best ideas maximizes returns.

How does Duan Yongping apply risk management in practice?

Duan Yongping applies risk management through several key principles including "Concentrate Your Portfolio" and "Avoid Leverage". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes Duan Yongping's approach to risk management unique?

Duan Yongping's approach to risk management is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Duan Yongping provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.

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