Reading 'Duan Yongping's Investment Q&A' to Learn Pure Value Investing

1. Why read this book?

Directly excerpt a few paragraphs to feel:

"I guess that in a few years, Alibaba Group or Tencent will be China's first private listed company with a market value of 50 billion, or even 100 billion US dollars. (2010-02-09)"

"The reason Alibaba is worth 100 billion is because I believe Alibaba will eventually earn 10 billion or more... Alibaba will eventually earn more than 10 billion US dollars a year, and this number may be seen in about 5 years. (2013-03-20)"

"The assumption of buying Yahoo is that Yahoo itself cannot have too many problems, such as not losing money (it seems that it won't for a while now, but 10 years later, who knows). The ideal goal is to feel that you can clearly see 10 years or longer. For Alibaba, I am not too worried about more than 10 years, but Yahoo itself is unclear, with some issues. Haha, the most ideal is to hold stocks for a long time and never want to sell (as Buffett said). (2010-05-16)"

"From our business of selling learning tools, it seems that we can also feel the changes in the age group of the population. Calculating the real estate bubble (if there is one), it should be about the time when these people need to buy houses. (2011-01-10)"

See, when many people are floating and sinking in the stock market, this person knew the result more than ten years ago, so he made tens of times or hundreds of times the money. This is a master, worth learning from.

2. Buffett's disciple, value investment interpreter

Duan Yongping himself said that he was greatly influenced by Buffett. In fact, many people have more or less seen Buffett, but the simple is often not simple, and they can't understand much after reading. At this time, reading Duan Yongping is very meaningful, a bit like reading Buddhist scriptures. What the Buddha said is very concise, but the world cannot comprehend it. There is a person named Subhuti who always asks the Buddha questions, and the question and answer make it easier to understand.

3. Subversive stock market cognition

Reading it is as shocking to the investment field as reading 'The Three-Body Problem' is to the cosmic view. Many of us may understand the stock market and operations completely differently:

For example, when asked about the timing of buying, he said that looking at timing is speculation, speculation is like hunting, investment is like farming, speculation is tiring and a zero-sum game, be careful of being taken down by the prey, investment is pleasant and can lead to longer life.

When asked how he looks at charts and lines, he said charts and lines only represent others' views, he doesn't look at charts, lines, or the market.

When asked how to do trends, he said he has seen people who are very good at trends, but after decades, they still have small funds.

When asked why not finance, he said financing has the opportunity to be rich twice.

When asked what to do if the stock rises and sells too early, he countered that shouldn't a good company keep rising?

When asked how to operate with market ups and downs, he said he cares about the company's business, not the market.

When asked how to operate in bull and bear market stages, he said bull and bear markets are only known after the fact, he still cares about the company's business itself, not bull or bear markets.

So when to operate and buy, he feels that regardless of the environment and others' views, he acts when he feels the stock is cheap, which may seem like bottom fishing to speculators but is not at all, he is not focused on the market and others, he is completely looking at his own estimation.

When you say ordinary people don't have this kind of cognition and operation in the stock market, he says that's why retail investors are retail investors. He said Buffett also started as a small fund retail investor, but if you want to talk about the difference, he is not playing stocks, but focusing on the intrinsic value of the company, ordinary people only focus on the market and stock prices, true value investors believe in value in their bones.

4. Personal feelings

The whole book is full of golden sentences, and his answers are quick-witted, humorous, and sharp. Although the content is relatively much, the question and answer are not boring. Personally, I feel it is a very helpful book, refreshing.