Selected from The Great Way: Duan Yongping's Investment Q&A and his Xueqiu discussions — with original context and background.
"Buying stocks is buying businesses — that has never changed."
Duan says this is the most important thing he learned from Buffett, and Buffett says it was the most important thing he learned from Graham. This sentence is the starting point of all value investing.
2021-07-28
"Investing is buying future cash flows. Buying a company is buying the present value of its future cash flows."
"Understanding a company" means being able to see its future cash flows. Discounted cash flow is a way of thinking, not a formula to plug numbers into — because no one can truly know the variables.
2012-04-05
"Never touch what you don't understand — this is an iron rule."
Knowing how large your circle of competence is often matters more than how large it actually is. Don't casually try to "expand" your circle — truly understanding a business takes many years.
Xueqiu Q&A
"If you shouldn't be doing something, you shouldn't have started. Once you find you're wrong, stop."
This is the core of Duan's "stop-loss, not stop-gain" philosophy. Mistakes are inevitable, but when you spot one, correct it immediately. The reason to hold a stock is that you still believe in it — not because you're already down.
Xueqiu Q&A
"If you're not willing to own a stock for ten years, don't even think about owning it for ten minutes."
Quoting Buffett, and also his own practice. This is the first gate every self-described value investor must pass when deciding to buy a stock.
2012-07-27
"Investing is like farming — patient, methodical, building steadily. Speculation is like hunting — a zero-sum game where speculators prey on each other."
People who think of investing like farming have a much better mindset, because they roughly know what they're doing. Investing earns what the company earns; speculation is a zero-sum hunt where everyone is prey.
2020-11-20
"Investment conviction means believing that in the long run, markets are weighing machines. For those without conviction, markets are forever just voting machines."
The conviction Duan describes isn't metaphysical — it's something you believe in your bones, something that won't be shaken by any outside influence.
2013-05-17
"Can something that never addresses risk even be called investing? Risk is the first consideration in any investment decision."
The risk in value investing should be no greater than the risk of driving to work. The risk in speculation is no smaller than walking into a casino. Invest in what you understand — and the most important thing is being able to see where the risk actually is.
2012-07-19
"Doing the right things ultimately leads to good outcomes. Doing the wrong things ultimately leads to big trouble."
Duan's "benfen" (本分) philosophy: do what is right, don't do what shouldn't be done. This isn't only an investment philosophy — it's his life conviction.
2013-02-13
"Because no one wants to get rich slowly."
Buffett's answer when Bezos asked: "Your investment system is so simple — why doesn't everyone do what you do?" Duan adds: "Actually, I don't want to get rich slowly either. I just don't know how to get rich quickly."
2019-06-03