Stop Doing List · What Not To Do
Knowing What NOT to Do
Matters More Than Knowing What to Do
Duan Yongping's most distinctive thinking tool — the Stop-Doing List defines the boundaries he has held in investing and business for decades
Duan Yongping believes most people's problem isn't that they don't know what to do — it's that they don't know what they shouldn't do. The "Stop-Doing List" is about explicitly naming the things you should never do, turning them into principles, so they hold firm when temptation arrives.
In BBK's corporate culture, this concept is called "benfen" (本分) — do the right things, and don't do what shouldn't be done.
Investing Stop-Doing List
No Short Selling
Short selling is structurally irrational. Going long, you can lose at most 100%. Going short, theoretically your losses are unlimited. Duan considers short selling "stupid" — even if you're right about the direction, you can still get badly hurt by timing.
"Short selling is stupid — I never short. There's no cap on how much you can lose going short."
No Margin
Using leverage (margin) is a cardinal sin in investing. Borrowed money amplifies fear, forces you to sell at the worst moments, and destroys your ability to hold through market lows. Investing money must be idle money — otherwise it's speculation.
"No margin is a basic requirement of investing. Investing uses idle money — otherwise it becomes speculation."
Never Touch What You Don't Understand
This is the iron rule Duan emphasizes most. If you don't understand a company's business model or can't judge its moat, never buy. It's better to miss an opportunity than to lose big in territory you don't understand.
"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."
No Frequent Trading
Investing isn't a sprint, it's a marathon. Frequent buying and selling not only incurs friction costs — it reflects a lack of genuine understanding of what you own. Every purchase should be thought through in units of ten years.
"Every stock I buy, I buy intending never to sell. (2019)"
No Stock Price Prediction
Buy businesses, not price movements. A stock's short-term trajectory is unpredictable. Spend your energy understanding the business itself, not guessing market sentiment.
"Buy businesses only, don't predict stock prices. (2014-01-16)"
No Chasing Hot Sectors
Don't research industries you don't understand just because they're popular. Don't follow the crowd just because others are making money. Everyone's circle of competence is different — someone else's great business isn't necessarily yours.
"Don't casually try to 'expand' your circle of competence — truly understanding a business takes many years."
Business Management Stop-Doing List
No Doing Evil
This is the most fundamental principle of BBK's corporate culture. Don't earn immoral money. Don't operate in grey areas. Duan believes the core of corporate culture is "knowing what you must never do."
"The most important thing is knowing what you must never do. Not doing evil — this is actually the hardest thing for most companies."
No Taking Advantage of Others
Don't exploit suppliers, employees, or customers. In the long run, consumers as a collective are rational — companies that try to deceive them will ultimately pay the price.
"Earn money you deserve, and you'll sleep well."
No Blind Innovation
Be bold enough to follow rather than lead, then compete to do it best. Don't strive to be "first" — strive to be best. Running a company is like platform diving: fewer unnecessary moves is better. Unnecessary innovation multiplies risk.
"Blind innovation is dangerous. Running a company is like platform diving — fewer moves is better."
No Marketing-First Culture
No company has ever built lasting success purely through marketing. Advertising only expresses the product — great products ultimately earn great reputations on their own. A brand is a distillation of real differentiation, not an image manufactured through ad spend.
"No company has ever grown through marketing alone and lasted. Advertising only expresses the product."
Life Stop-Doing List
No Being Fake
Don't say things you don't mean. Don't do things against your conscience. The most important quality in a leader is integrity. Being evasive and diplomatic is an easy short-term move that erodes trust over the long run.
"No being fake — don't say what you shouldn't, but always say what you should."
Don't Let Time Slip Away
Do as much as you can of what you love. Avoid as much as you can of what you dislike. Time is the most non-renewable resource — don't waste your life on things you don't care about.
"Try your best to do things you love, and avoid people and things you dislike."
The Essence of the Stop-Doing List
The essence of the "Stop-Doing List" is turning principles into habits — so you remain consistent under pressure and temptation. Duan says the most important part of corporate culture isn't "what to do" but "what not to do."
"Benfen means doing the right things and not doing what shouldn't be done. Good corporate culture is simply doing the right things."