Duan Yongping: Buffett’s railroad nears monopoly; cites TSMC on heavy assets

"Chinese Buffett" Tracking10-30

Value investor Duan Yongping said on October 30 that Buffett’s railroad is “nearly monopolistic” and profitable, arguing that heavy-asset businesses can be good and pointing readers to TSMC.

His remarks came in response to a user’s question about how he evaluates a company’s “business model” at first glance. The commenter cited Walmart and railroads as heavy-asset examples that might be excluded if one focused only on the most basic earning mechanics, while noting that Buffett nonetheless invested in Walmart and railroad companies.

In his brief reply, Duan wrote: “Buffett’s railroad is nearly a monopoly, and its profits seem very good. Who says heavy-asset businesses aren’t good? Learn about TSMC?” He emphasized that heavy-asset firms can still be attractive when considered alongside their competitive moats, and he referenced TSMC as an example. Duan did not elaborate further.

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