Duan Yongping, often referred to as the "Chinese Warren Buffett," is a legendary investor and entrepreneur. He founded BBK Electronics, which later split and developed into the two smartphone giants, Vivo and Oppo. He also achieved success in investing, particularly by earning a hundredfold return on his investment in $NetEase (NTES.US)$. His investment philosophies closely mirror those of his American counterpart, Warren Buffett, emphasizing value investing, patience, and a deep understanding of businesses. Here, moomoo explores 10 of Duan Yongping's most impactful investment quotes.

1. "Buying stocks is buying companies."

When you invest in stocks, you are essentially buying a piece of a company. It's crucial to approach this with the mindset of viewing the company as if it were not publicly traded, requiring a rational and strategic approach.

2. "My investment criteria are simple: find companies with high long-term returns within my understanding."

Duan advocates for simplicity in investment strategy, focusing on companies that are both understandable and capable of delivering substantial long-term returns. This philosophy guided his investments in giants like Apple and Kweichow Moutai.

3. "There are very few companies I understand."

Comprehending a company can be as challenging as earning a college degree. He learned from Buffett the importance of first evaluating a company’s business model. If the model isn’t appealing, there’s no need to delve further.

4. "A good business model means sustainable profitability."

He stresses the importance of a business model that can generate substantial and sustainable profits over time.

5. "Companies that are hard to understand are easy to spot."

Duan has a way to determine if you truly understand a company: If a drop in a stock's price makes you want to sell, or a small increase tempts you to cash out, it indicates a lack of comprehension. On the other hand, when you genuinely understand a company, you stay calm and unaffected by any changes in price.

6. "Selling high and buying low is an enticing yet often futile endeavor."

Duan admits that attempting to time the market to profit from price differences usually leads to wasted effort and reduced earnings. Recognizing when not to act is crucial.

7. "If you understand investing, you don’t need leverage."

If you understand investing, you don't need leverage; if you don't understand investing, you definitely shouldn't use leverage.

8. "Avoid frequent decision-making."

Making too many decisions increases the likelihood of mistakes. Instead, focus on making a few well-considered decisions over a lifetime.

9. "Great investment ideas can often be summarized simply."

The key is to find companies with a sustainable competitive advantage, managed by competent and dedicated individuals, and to buy them at reasonable prices.

10. "Right actions come from stopping wrong ones."

Correct decisions often arise from ceasing incorrect actions immediately, regardless of the cost, as it’s usually the least expensive option.

Duan Yongping’s investment philosophy is a testament to the power of simplicity and understanding. His approach underscores the importance of deep comprehension, patience, and strategic foresight in the world of investing. By focusing on sustainable business models and making informed decisions, investors can navigate the complexities of the market with greater confidence and success.