In yesterday's article, I recommended David Li's "Advanced Guide to Value Investing" to everyone. The author also recommends several good books in the book, one of which is "Duan Yongping's Investment Q&A."

"Duan Yongping's Investment Q&A" is divided into two volumes. The first volume discusses business logic, while the second volume covers investment logic. This set of books summarizes the Q&A sessions between Duan Yongping and netizens on Xueqiu.

I highly recommend that everyone take a serious look at this set of books.

Compared to David Li's book, which is more theoretical and focuses on principles and underlying logic, this set of books describes Duan Yongping's understanding of value investing (and venture capital) with more vivid and practical examples.

Especially the cases mentioned by Duan Yongping in the Q&A are familiar and relatable to our generation, making it easier to empathize and understand.

These cases include Vanke, Alibaba, Tencent, JD.com, Pinduoduo, Apple, Google, Amazon, and others.

Many of Duan Yongping's views on these companies were published over a decade ago. Over the years, the subsequent developments of these companies have often validated Duan Yongping's early judgments.

Using those judgments to guide investments not only helped him achieve substantial returns but also helped him avoid pitfalls and traps that are hard for ordinary people to resist.

By comparing the past and present, I have a deeper understanding of why we need to look at a company for 10, 20 years, or even longer. Although Mr. Buffett has mentioned this many times, I only gained a further understanding after seeing Duan Yongping's comments combined with my own experiences.

For example, Vanke.

In the early years, Duan Yongping bought it but quickly sold it, stating that he couldn't understand it. Although Vanke continued to rise after he sold it, he no longer paid attention.

In the transcript, someone asked Duan Yongping in 2014: After reading the annual reports of Moutai and Vanke, the profits of the two companies are similar, but their market values differ by almost half (Note: At that time, Vanke's market value was 70 billion, and Moutai's was 140 billion). If you had the money to buy the entire company, which one would you choose?

In that era when Vanke was thriving, I believe the vast majority of people would choose Vanke.

But Duan Yongping simply replied, "Have you ever borrowed money?"

Another example is in 2019, when someone mentioned Greentown, saying it had cash equivalents of 49 billion, current assets of 280 billion, and debts of 250 billion. Even in liquidation, it would still have a value of 30 billion. Moreover, Greentown has such a good reputation, but they didn't understand why its stock price was so low.

I believe most people would buy Greentown because of the "even in liquidation, it would still have a value of 30 billion" combined with Greentown's excellent reputation.

But Duan Yongping's response was, "I don't understand either, but I wouldn't buy such a highly leveraged company."

At that time, Vanke was not only the leader of China's real estate market but also a benchmark and model for A-shares. Greentown, on the other hand, was the company among Chinese private real estate firms that focused the most on quality and style.

2014 was still an era of rapid growth in China's real estate market, while 2019 was the most dazzling moment of a brief resurgence in the industry.

I believe that at that time, very few people would have thought that later on, private enterprises in China's real estate industry would be wiped out, and Vanke would essentially head towards bankruptcy.

The core reason for this was the unbearable debt burden, which is the key point that Duan Yongping pointed out in both Q&As.

This shows Duan's foresight at that time, and what is even more admirable is that at those companies' high points, he could reject the apparent halo and see the huge risks hidden within.

In addition to the good selection of cases, another characteristic of this set of books is that Duan Yongping's language is relatively simple and easy to understand. I believe the vast majority of readers can easily comprehend it.

Among the major investors in China, I often pay attention to Duan Yongping, Li Lu, Lin Yuan, and Dan Bin.

Among these four,

Li Lu's expression feels very straightforward and easy to understand, but perhaps due to my limited exposure, I haven't heard him discuss specific case analyses much.

Lin Yuan's expression is very jumpy, often making me feel like he only says half of what he means. However, his words easily leave a deep impression on my subconscious. For example, months, a year, or two years after hearing something he said, I might suddenly recall a specific phrase he mentioned in a certain context or case, and then slowly understand what he was trying to convey.

In the transcript, Duan Yongping once commented that some of Lin Yuan's viewpoints are very insightful.

Dan Bin's expression is very macro. The cases he shares in his talks and books leave a deep impression on me and occasionally make me reflect.

Duan Yongping's viewpoints and statements, as far as I have seen, are the most detailed, rich, and down-to-earth.

Why do I recommend that everyone take a look at these books?

Because I believe that investments in the crypto ecosystem ultimately need to return to normal logic, which is the same as the investment logic in traditional primary and secondary markets, focusing on their business models, corporate culture, and so on.

These books discuss normal logic that has been repeatedly validated by history, and the experiences and lessons within them are worth our learning. We still need to embark on the path of returning to common sense and being grounded in our investments as soon as possible.

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