Duan Yongping Interview: From Choosing Companies to Teaching Kids, 50 Core Tips

DeepFlowTech

2025-11-12 13:53:01

This is a rare video interview with Duan Yongping more than 20 years after stepping down from BBK.

In yesterday’s professional dialogue segment “Strategy” Season 3, produced by Snowball, Snowball founder Fang Sanwen and Duan Yongping engaged in a rare exchange of ideas around investment philosophy, corporate culture, and long-termism.

During the two-hour interview, Duan Yongping shared his views on various topics including investment, corporate culture, management, companies, and his children’s education. The following is an excerpt from the full transcript, highlighting 50 key points for readers.

About Investment

Cheap things can become even cheaper.
Staying rational is very difficult.
If you truly know how to invest, you don’t need advice; just buy good companies and hold them.
People care about what we have done; actually, a big reason we are who we are is because of what we haven’t done.
Investing is very interesting; not understanding it doesn’t mean you can’t make money.
If you can’t withstand a 50% drop in a stock, you shouldn’t buy it.
In the AI investment era, if you try to make money by just looking at charts and lines, you’re just a naive rookie.
The probability of making mistakes is actually similar for everyone; some people just don’t make the same mistake repeatedly.
Buffett’s margin of safety doesn’t mean cheapness; it refers to how well you understand the company.
Buying stocks is buying companies. If only 1% of people truly understand this, it’s remarkable; doing it well is even harder.
Why is investing simple but not easy? It’s simple because you must analyze the company, understand the business, and forecast future cash flows; it’s hard because most companies are difficult to understand.
Making money in stocks is hard; most retail investors lose money in both bull and bear markets—about 80%. So, don’t think you’re special.
Coming from an entrepreneurial background, I find it easier to understand others’ businesses, but I can’t understand too many businesses.
Why can you hold on so long and make so much money but still not sell? Because the amount of money isn’t that much.
Is copying others’ work a sustainable investment method? Very difficult, because it’s lagging.

About Corporate Culture

Corporate culture is closely related to the founder; find those who agree with you and share your values.
Much of our culture evolves during growth, including our “Don’t Do List,” which is added to step by step. We learn what not to do through painful lessons.
“Doing the right thing and doing things right” clearly separates right from wrong… If something feels wrong, we tend to stop easily; if you only consider money, it becomes complicated.
What is said is what is done, so everyone feels confident, and there is high mutual trust… Employees’ bonuses are what they deserve. When we distribute bonuses, some say “Thank you, boss,” but I say that’s inappropriate because it’s based on a contract; you don’t need to thank me.
We have two types of people: one called like-minded peers, and the other called colleagues. They agree with you; even if they don’t fully understand, they will follow your lead.
A good culture ultimately will return to the right path, guided by a North Star, indicating what it should do. It’s not just about business; discussing only business can lead to mistakes.

About Business Management

Steve Jobs told Tim Cook: As CEO, you make decisions; don’t think about what I would do—that’s the right approach.
(Regarding partners) I trust them greatly; I think that’s very important. I’m not afraid of them making mistakes.
Panasonic’s president told me: When making a decision, I think about how Panasonic’s founder would view it. I realized I was in trouble.
I have a habit: if I encounter something unsuitable, I leave quickly.
Your eyes should see the users; their eyes look in the rearview mirror.
It’s very difficult for founders to leave their companies; not many can do it. Why is it hard? Because they don’t want to.
I don’t think age must be an obstacle. Buffett is over 90 and doing quite well. He just loves doing this and keeps at it.

About Children’s Education and Growth

All parents’ actions are aimed at giving children a sense of security.
I don’t expect my children to do things I can’t do myself.
Children are always temperamental, and they can express their emotions in their own language at any moment.
It’s important to set boundaries and tell them what they can’t do. I think this is very important, rather than constantly scolding them.
For children, giving them a sense of security is crucial. Without security, it’s hard for people to be rational.
The most important thing learned in college is how to learn—building confidence that when you encounter something you don’t understand, you can learn it.
Everything parents do teaches children how to behave. Yelling teaches them to curse; hitting teaches them to hit; losing temper teaches them to be temperamental; being kind teaches them to be kind to others.
Doing exercises is very helpful, but not everyone can realize this. You need to find methods and identify the reasons behind your mistakes to understand the whole logic.

About Understanding a Company

I usually tell people I only have three stocks: Apple, Tencent, and Moutai. That’s pretty much it.
When Apple finds that its products can’t add enough value to users, they stop. They don’t chase business just for the sake of it—that’s their culture.
What do I think of Apple’s current price? Not cheap, but I don’t know if Apple will develop further. Where AI will land, it still comes down to smartphones, right? Apple could double or triple in the future, but I don’t know.
I think Apple’s corporate culture is excellent. They care deeply about quality and user experience.
Over a decade ago, there was talk about Apple launching a car. I said they would never have an electric vehicle. What they can do and whether they have enough differentiation—that’s what I understand about Apple more than most.
I don’t know how much AI will replace search, but overall, I think Google is still quite good.
I watched many videos of Jensen Huang; I admire him. What he said over ten years ago is the same as today. He saw it early and has been heading in that direction.
I knew about TSMC long ago, but I didn’t understand the industry. I thought they were heavily asset-intensive. Now I realize that with the rise of semiconductor AI, everyone can’t escape TSMC; it has eliminated many competitors.
I think at least AI should be involved; missing out entirely seems inappropriate.
The electric vehicle business won’t be easy; it will be exhausting with little differentiation.
Baijiu (Chinese liquor) divides into two types: Moutai and others.
The most important thing for Moutai is whether it has a culture to sustain it. The core is its unique flavor and the recognition of its target consumers for that flavor.
When Moutai was around 2600-2700 RMB, I wanted to sell. After selling, what would I buy? Those who sold probably lost more because they bought other things.
Based on today’s perspective, I wouldn’t invest in General Electric; its business model isn’t very good. I didn’t have the level I have now back then.

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