Duan Yongping, who is inextricably linked with Xiao Bawang, Bubugao, OPPO, vivo, Yijia and Pinduoduo, is also an important participant in the turning point of Ding Lei and Huang Zheng.

What makes him most praised is that as an investor, by investing in NetEase, Inc, GE, Apple Inc, Tencent, and other enterprises, he obtained a huge return that exceeded the original industrial profits, and became one of China's famous "value investors." his personal worth has now reached as high as 11.5 billion yuan. Because he retired to the background at the age of 40 and lived in the United States all the year round, Duan Yongping was once called "the most mysterious rich man in China."

In fact, Duan Yongping is not mysterious. Compared with many entrepreneurs who are high in the cloud, Duan Yongping is one of the few people who is willing to maintain long-term interaction with the public and share his life experience without stinginess.

We read the sharing of Duan Yongping on NetEase, Inc blog and other platforms from 2010 to 2021, as well as his early public speeches and interviews, from which we can see that his ordinary mind and duty are his underlying thinking all the time, on this basis, he has a very keen judgment on the enterprise.

He did not hide his appreciation of the business models of Apple Inc, Maotai and Tencent. He commented, "I don't know what Apple Inc is doing, but I do believe that Apple Inc's products will eventually be high-quality products." he also sincerely expressed his views on many companies: "I still think that Shun Feng and Zoom are very good companies, but neither of them is the best kind." Starbucks Corp is also a good company, and he is expected to be alive and well in 10 or 20 years' time.

Including who he recently learned to rename Gaotu Techedu Inc. classroom, when everyone was guessing the intention of the change, Duan Yongping said bluntly: "it is probably the slowest and most uncomfortable Internet product in the world, and the business model looks very bad."

Business model is an important basis for Duan Yongping to judge an enterprise. he believes in "the right business, the right person, the right price" in the value investment. Buffett's value investment concept has a profound impact on him.

This paper extracts the wonderful content shared by Duan Yongping over the past decade, including the underlying logic of his thinking, as well as 40 suggestions on management, corporate culture, team building and investment.

01、Personal growth:How to understand the duty and have a normal mind?

1. It is often difficult for ordinary people to have an ordinary mind.

two。 It's like playing golf. Investment and life are not perfect. Most of the time, there is not much difference between a good golfer and an ordinary golfer, the only difference is whether to keep a normal mind for a long time. No matter how good the player is, he will still play badly when he loses his normal mind.

3. The ordinary mind is the mentality of returning to the origin of things, that is, trying to recognize what is right and the nature of things.

4. People often pay attention to us because of the things we do, but in fact, we become who we are largely because of the things we don't do.

5. My personal understanding is "do the right thing + do the right thing". It is not my duty to do what I know is wrong. This is a very good tool to examine yourself.

Personally, I think it is inappropriate to always use "duty" as a "demon mirror" to look at others.

A long time ago, we put forward the culture of "don't take advantage of others". As the saying goes, heroes do not suffer immediate losses. It is only natural that you do not like to suffer losses, and there is nothing wrong with it. I remember that in the past, people often talked about "win-win", but how many people have really thought about what "win-win" is? When people talk about "win-win", they may instinctively think that as long as they have nothing to lose.

Later, it was found that if you want to avoid losses, you often need to earn a little cheaper to do so. Personally, I think that only in the mentality of "not making people cheap" is it possible to achieve "win-win"-so "do not make people cheap" has become one of the contents of "duty".

6. What's the right thing?My understanding is that what is right generally refers to something of principle, and it is often expressed in terms of what is wrong. For example, it is wrong to deceive people and so on. So, in practice, doing the right thing often becomes the wrong thing. Don't do it. For example, don't do what you don't understand, and so on.

Getting things right is a long learning process, and learning ability and education are very important.I went to college in'78. At that time, I didn't even study computer, and my foundation was very poor. I was also a very lazy person, and I was not so willing to learn those new things, so I always felt that I was not a good candidate for CEO, so I found a better candidate than me.

Now OPPO and vivo's CEO are about 10 years younger than me, have better education and learning ability than me, and have the same understanding of corporate culture as I do (we are called the same people), so I chose to leave the front line at that time. More than ten years have passed, and today I can proudly say that I am indeed right.

7. The greatest success in life is to be a person with a goal. All happiness lies in achieving this goal, not in getting a result.

8. I can't think of a word that can be used as advice to everyone. If we have to say, it is "enjoy life", that is why people come to this world.

9. Many people forget what they want to do in the end and forget about it as they walk. Really, don't spend all your life on the accumulation of fame, power, or money. Never use life without enjoying it. To be a man, you must first leisurely sweep the room, and then calmly sweep the world.

10. Often see people mention financial freedom, feel that most people think that financial freedom mainly depends on the amount of wealth, as if to a certain amount can be free.

Actually, from a personal point of viewFinancial freedom may not have so much to do with the amount of money you own, especially for those who already have a lot of wealth.

My own definition is that when you don't do what you don't want to do for money, you already have financial freedom. Then you can find that many people who are not so rich can be very happy because they are doing what they are willing to do. At the same time, we will also find that some very rich people are not very happy, because they have to do a lot of things they do not want to do every day.

11. You ask a person to look back at the road he has traveled, which he does not understand, and the experience is summed up by others. Starting a business is sometimes an impulse, and so is doing things. If you succeed on the spur of the moment, people will say it is adventurous or entrepreneurial, but if you fail, people will conclude that it is desperation and gamblers.

twelve。 If a person can not only achieve success, but also control success for a long time, then this must be a quality. A president of an American university once said that the characteristics of the successful CEO of all the top 500 companies in the world are integrity and integrity. Character is very important.

13. The longer the time, the smaller the proportion of luck.

14. Some people ask how to avoid thinking that they are wrong again. Personal point of view: mistakes are inevitable, but staying in the circle of ability and concentration and hard work can greatly reduce the chances of making mistakes.

15. If I encounter something I can't solve, I will play a game. Anyway, it will pass for a long time.

16. I don't think anyone is born with savvy.The savvy people I see are generally very enlightened and are used to thinking about essence and long-term.

17. Zeng Guofan fought on the basis of clumsy spirit.

All his life, Zeng Guofan was good at fighting stupid and stupid wars, but not good at skillful warfare. He fought without greed for petty gain or ingenuity. He was down-to-earth and steady. He said, "when you fight a war, you have to be sure. "all his life, he never fought a battle that was unprepared and uncertain. He spent great painstaking efforts to study the situation of both the enemy and us, the deployment of the battle, the logistics supply, how to rescue the unfavorable situation, and so on, and instructed him to calculate every link, and only after a thorough calculation did he make up his mind to fight the war.

Zeng Guofan treated others all his life with sincerity as the foundation and clumsiness as the use. All his life, he asked himself "not to talk big, not to seek a false reputation" and to do things that "would rather people take advantage of me (appropriate) and never let me take advantage of others." Others deceived him with coincidences, but he still treated each other with sincerity and clumsiness.

Zeng Guofan's shrewdness was built on such clumsiness and racked his brains. Indeed, "stupid" to the extreme is "smart", "clumsy" to the extreme becomes "clever".

18. First of all, the Chinese people must correct their mindset, be convinced and learn to make concessions. Just like a farmer who has just come to the city from the field, he can only be a wage earner first, so he should be a wage earner. Only when you are convinced can you exhale and exhale. We must face up to the fact that our foundation is inferior to others, and we must learn good management experience and good skills from others with an open mind.

Mindset is the most important thing. When you cannot surpass others, you can only surpass yourself first, even if it is beyond your own narrow national self-esteem.

19. Awesome people are not very domineering, are they? The domineering people I have seen are usually people with low self-esteem.

20. A person doesn't really need much money, really, when the money reaches a certain amount, it's just a number that changes there. In the West, it is not easy to tell whether you have money or not. if an ordinary person talks to you, he may be worth billions, and you will not know at all, because he is absolutely equal to you in personality. In China, somehow there are so many nouveau riche, or people with a little money, one by one is better than the other.

"what kind of society can make the super-rich hide like a sea of people without seeing the end of the dragon? "

It must be a society that can control the deep invasion of money and culture.

02、Corporation Development

What are the characteristics of a great enterprise?

21. To be a normal person, so is the enterprise.

Often, the larger the business, the harder it is to keep a normal mind. For a new enterprise, his only goal is to survive. When a small business tries something, its opportunity cost is very low, it fails, and it doesn't cost much to do it again. In the United States, 95% of startups fail. However, when the enterprise has a certain scale, it is difficult for the manager to keep a normal mind, because he has more choices and a wider range of choices. similarly, he is more likely to make mistakes.What does a big enterprise compare to? Than who made fewer mistakes.

twenty-two。 Which one of the dead enterprises was beaten to death by others? They all died of their own mistakes! Which one of the evergreen enterprises in the world is not operating according to the rules of the enterprise? In China, the entrepreneurs who can finally gain a foothold in the world and become bigger and stronger must be the entrepreneurs who act in strict accordance with the rules of the enterprise. It's like only a nine-stage chess player can play professional nine-stage go.

23. The so-called "great company" often has a "stop doing list" that probably refers to this. If you are interested, you can read two books: excellence to Excellence and Good to Great and Builtto Last.

24. This is a self-description from the last chapter of the Biography of Steve Jobs, Legacy: a brilliant Paradise of Innovation. I have read it many times, and between the lines is a soul that shines all the time despite its dark side. Jim. Collins once summed up in Evergreen.One of the characteristics of a great enterprise is the pursuit of profit.Jobs and his Apple Inc gave the most perfect interpretation of this trait.

• If ① has a pursuit of "profit above", it is easier to see the nature of things, it is easier to insist on doing the right things or things that are less likely to go wrong, and it is less likely to be tempted to deviate from the general direction in the short term.

• ② if you are a manager with "profit above" pursuit, you will find a lot of ideas, but if not, you will look at it from a utilitarian point of view whatever others say.

Add a point: the pursuit of "profit above" is not a sufficient condition for a good enterprise, but the probability of an enterprise with "profit above" pursuit to become a good enterprise is much greater than that of ordinary enterprises, and the longer the time, the greater the difference.

25. What is the definition of "good company"? What is the definition of "failure"? How can we discuss it without definition? If a "good company" is defined as a company that has a much higher "success rate" than the average company, then "failure" should be defined as those cases with a high "success rate" other than "failure".

I think the so-called "good company" should be a company with principles, not a purely profit-oriented company.Companies that know what to do (or what not to do) and then pursue the efficiency of doing the right thing.

The process of doing things right is a learning process. Everyone makes mistakes, and good companies are no exception.

twenty-six。 Without a strong culture, there can be no great company.

twenty-seven。 The core competitiveness of BBK is corporate culture. Core competence is the ability of an enterprise to gain competitive advantage for a long time. It is unique to the enterprise, can stand the test of time, is malleable, and is difficult for competitors to imitate.

The so-called corporate culture is about what is right (or what is wrong) and how to do the right thing.

twenty-eight。 Integrity and integrity-integrity. This is the commonness of all great enterprises, and it is also the biggest "funnel" of the enterprises that have problems.

29. I agree with the view that "good enterprises are not easy to appear in industries with large capital expenditure."

thirty。 Only a very small number of enterprises are really "consumer-oriented" and have the ability to achieve "consumer-oriented". In the end, these companies are often called "great companies". Companies that do not have a "profit above" pursuit are less likely to have a "consumer-oriented" culture and are unlikely to end up becoming a "great company". Companies with the pursuit of "profit above" tend to have a "consumer-oriented" culture or genes, and may slowly become "great companies" under certain conditions.

Companies are run by people, so "great companies" are not immutable, and time may change things and make some "great companies" back to not so great.

31. "Shouzheng is not surprising" means that "Shouzheng" is not for "surprise". When many people say "Shouzheng is strange", all they have in mind is "winning by surprise", "overtaking around the corner" and so on. Most of the "strange soldiers" of good enterprises are boiled out, otherwise they will not be strange for long.

thirty-two。 All the masters dare to work for the world, but they do better than others.

The success of our company is not accidental, adhere to their own "Stop Doing List", screening partners, screening suppliers, slowly will accumulate a good circle, very valuable in the long run.

Dare to be the world, refers to the product category, because you guess the market demand is often very difficult, but others have identified the demand, you go to meet this demand, you are more sure. Daring to serve the world means "doing the right thing", and striving for the first in the latter refers to the ability to "do the right thing". )

Second, how to become a qualified manager?

thirty-three。 To me, my career has never felt like a pet, but it's a bit like my own child. I don't own it, but I'm very happy to grow up with it.

thirty-four。 When I read CEIBS, I once saw that the most important quality of an entrepreneur is integrity (integrity), so it may be fatal to violate the quality of integrity, if it lasts long enough.

thirty-five。 In fact, for a manager, the important thing is to establish the company's systems, set up the company's service charter, do all the important things well, and the employees can handle the rest by themselves.

thirty-six。 I didn't have a time schedule when I was CEO, but I had a rough idea of what was important.In short, don't let important things become urgent.

thirty-seven。 I think the most important thing about starting a business is that entrepreneurs feel that their products or ideas can provide something that others can't provide. If you just want to do business, you will have a much lower chance of success. Probably no one can "choose" the "arena" of the imbalance between supply and demand before starting a business, and even if they encounter it, they will soon fall into the Red Sea. To take a simple example: the shortage of Maotai is not planned by an entrepreneur before starting a business.

thirty-eight。 Any company where employees tremble at the sight of their leaders will go wrong over a long period of time. Because most of the employees of this kind of company will gradually become unattended, and if they want to leave everything to their superiors to decide, the efficiency will gradually decrease. Unless the company's products are very focused and the big boss can really take care of all the big aspects, something will go wrong sooner or later. I think this is the reason why Japanese companies have problems in some industries in recent years. (2018)

thirty-nine。 There are really not many people who can understand or do better than I do on the issue of authorization. The process of authorization is generally: directing, mentoring, negotiating, delegating, delegating power, and the last one is never out of control (only a good culture can do this). The most important thing here is to "do the right thing, do the right thing".

Third, how to form a solid team?

forty。 First of all, enterprises should establish their own core values, and the people they recruit must conform to these core values.

forty-one。 The suitability of talents is often more important than qualification.

Qualification refers to ability, and suitability refers to the identity of corporate culture. The people trained within the enterprise are highly suitable, and sometimes some positions in the enterprise are qualified for the introduction of foreign talents. Suitability is difficult to cultivate, it takes a long time, and sometimes a long time is useless. And qualification can be cultivated in most cases.

Qualification can be improved through training, and suitability is difficult to change. On the question of how to transmit corporate culture, it is suggested to look at Welch's "win".

When many companies choose people, they first look at the qualification, so it is easy to have problems in terms of probability, and many companies have problems with their own values, so it is naturally difficult to select people. The risk of an unsuitable person managing a company is often difficult to control, and as a result the company is likely to collapse. Companies with a better corporate culture tend to find problems more quickly, so they have a much better chance of correction and a much better chance of survival.

forty-two。 The income of good companies is generally not the highest. I learned a very important thing when I was at EMBA in CEIBS. Is that money is a health factor, not an incentive factor.

In fact, the income of employees is a health factor, that is, less can not, more useless things. Of course, sometimes this is not necessarily an absolute value, many times it will be reflected as a relative value (that is, a certain proportion). It is useless to increase the cohesion of the team by adding money, but reducing the amount of money can be significantly destructive.

The incentive factor is probably those things that are not directly related to money but make people happy to work together, which can also be called the pursuit of profit.

forty-three。 It is difficult for an enterprise to survive without innovation, but innovation refers to innovation under the premise of user-oriented, not for different and different innovations. Our company calls this differentiation, that is, something that meets the needs of users and has not been provided by others. Of course, there is absolutely no shortage of what users need and what we have already provided. Blind innovation is dangerous, and innovation under the premise of consumer orientation is an important basis for the survival of enterprises.

03、Investment: what is value investment?

44. Rightbusinesswoman right people,right price. (right business, right person, right price. That's what Bud said. ) the right business means the business model, and the right person refers to the corporate culture. Price is not that important, business and people are the most important.

Culture has a lot to do with founder. Business model is the way to make money. You have to understand this by yourself. I can't tell you. Just like if you don't play golf, I can't tell you how much fun it is.

forty-five。 Most people are used to investing to see if they "do the right thing", so it's easy to fall into short-term performance.

Even great companies can make mistakes in the process of "doing the right thing", because "doing the right thing" often takes a process. The so-called "long-term investment", in a sense, is to be able to believe that capable companies that insist on "doing the right thing" will eventually "do the right thing".

forty-six。 Not knowing and not doing (ability circle) is a necessary prerequisite (not sufficient) for a person to judge the intrinsic value of a company.

forty-seven。 The investment I understand can be summed up as: to buy a stock is to buy a company, and to buy a company is to buy a company's future cash flow discounted, full stop!

This is what I mean by faith, or I believe from the bottom of my heart that I will not be shaken by any influence. When it comes to investment, many people will immediately come up with a lot of terms that everyone doesn't understand, probably because they don't have this belief.

In fact, investment means value investment, otherwise what is the investment? What is the value of the company? It is the discount of the company's future cash flow.

How long is the future? It means forever. How long is forever? Until the end of the company. What do you mean, the end of the company? Is all the possibilities, including selling.

Buffett says it is most important to understand the business model of a company. I don't understand? Then look at Xi Shi candy, look at Coca-Cola Company, look at BYD, look at Apple Inc, look at airlines, look at those "photovoltaic enterprises" that make solar chips.

Don't you get it? Then start all over again, and then we'll see. If you don't understand it within 10-20 years, you can use this method, that is, "start all over again, and then we'll see."

forty-eight。 Investment is indeed the future cash flow (discounted) bought. The biggest guarantee of future cash flow (discounted) is the "business model". The strongest business model is monopoly, or "moat".

forty-nine。 Something that can increase the price means that he has a "moat", and he is very talented to realize this.

fifty。 Is it a good price to look back from the future?