Duan Yongping: 80-90% of Retail Investors Lose Money in Speculation, Regardless of Bull or Bear Markets

In a rare public appearance, renowned entrepreneur and investor Duan Yongping joined Wang Shi and Tian Pujun for an in-depth conversation in the documentary series *Common Talk* Season 3. The discussion offered valuable insights into his investment philosophy.

**Investment Logic: Understanding the Business is Key**

Wang Shi remarked, "Yongping, it’s rare for us to have such a serious chat despite knowing each other for so long. People often associate you with buying NetEase, but few know you also invested in CHINA VANKE (万科企业). Remember when you came to Shenzhen and we met? The stock price was very low then."

Duan Yongping responded, "At that time, many raised concerns about CHINA VANKE. I believed those issues were likely untrue because Wang Shi didn’t strike me as someone who would manipulate accounts. Mistakes are possible, but fraud is another matter. The financial data suggested the stock was undervalued, so I bought it. Later, when the price surged, I sold. It was a fortunate timing."

When asked about the year, Duan recalled it was around 2004–2005. "That was my first major A-share investment. Later, I bought Starbucks and eventually Kweichow Moutai Co.,Ltd. (贵州茅台)."

Tian Pujun inquired, "Do you still favor Kweichow Moutai Co.,Ltd. now?"

Duan replied, "Why wouldn’t I? If you don’t drink, it’s hard to grasp, but many of my friends love it—that’s how I understand the business. Holding Kweichow Moutai Co.,Ltd. is better than keeping money in the bank, though other investments might outperform it."

He drew parallels to Buffett’s investments in See’s Candies and Coca-Cola. "See’s Candies is a closer comparison. Buffett bought the entire company; I can only afford shares."

Duan emphasized that value investing is often perceived as difficult, but speculation is even harder. "80–90% of retail investors lose money speculating, whether in bull or bear markets. Holding Kweichow Moutai Co.,Ltd. for over a decade wasn’t hard—understanding the business is what matters."

When asked if he checks his accounts frequently, Duan said, "Looking doesn’t mean selling. If you truly understand a company, market fluctuations won’t sway you. Those who panic and sell are speculating. Speculation may bring short-term dopamine highs, but investing is different—it’s about long-term confidence in the business."