In China’s investment world, there is a figure known as “東洋のバフェット,” named 段永平. When you dig deep into his investment philosophy and track record, you’ll find genuinely fascinating lessons packed within.

What makes 段永平 extraordinary is his shift from starting a business to investing. In 1988, he took over a small factory that had racked up losses of more than 2 million yuan, and within just a few years it grew to an annual output on the scale of 100 billion yuan. After that, he separated from the 益華グループ group and founded 步步高, the predecessor of OPPO and Vivo, and won the “標王” award on CCTV advertising for two consecutive years. In his 40s, he abruptly retired from the fast lane, moved to the United States, and turned to investing. His current assets are said to exceed 30 billion dollars.

In 2006, 段永平 became the first Chinese investor to win the auction for a lunch with バフェット, paying 620,000 dollars. At that time, he recommended Apple to バフェット, and it is well known that バフェット then bought a large amount of Apple shares. 段永平 himself was also deeply influenced by バフェット’s value investing philosophy.

Looking at his actual investment performance, if he invested 2 million dollars in NetEase, it swelled to more than 100 million dollars—about a 20x return. It has also been reported that afterwards it reached as high as 68 times. Apple has continued to hold it as a long-term investment since 2011, and as of the end of 2024, the value of his holdings is over 10.2 billion dollars, accounting for more than 70% of his total position.

What’s interesting is that 段永平 views 貴州茅台 as a “long-term bond.” He has invested almost the entire amount in 茅台 using renminbi accounts, and predicts that after 10 years it will outperform bank deposits. For him, the intrinsic value of 茅台 is stable, and he doesn’t care about price fluctuations. In his investments in Tencent and Pinduoduo as well, he adopts a strategy of buying more precisely when the stock price is depressed.

There are 10 investment principles 段永平 talks about, but the most important is this. First, fish where the fish are. While A-shares have been stuck for 20 years, US stocks have continued to rise. Next, choose stocks within 1 year and hold them for 10 years. バフェット also says, “If you can’t hold a stock for 10 years, you shouldn’t hold it for even 10 seconds.”

Buying stocks means buying a company. If there are good products, an excellent business model, and visionary management, there’s no need to be afraid. Investing requires belief—believe in it from the bottom of your heart and remain unmoved by any market noise. 段永平 uses two accounts. One is for value investing: he never sold Apple even once over 14 years and achieved returns of several hundred times. The other is a speculation account, but what he got was only a small profit.

There are no shortcuts in investing. People who look for shortcuts will probably keep looking even 20 years later. In the end, speculation is basically the same as flipping a coin—only a 55 to 45 probability. It’s also important to reduce the number of judgments: if you make 20 decisions in a year, you will inevitably make mistakes. He says that 20 investment decisions in a lifetime are enough.

Buy when nobody is paying attention, and sell when people rush in. When NetEase plunged all the way down to 1 dollar, 段永平 said, “If something worth 10 yuan is being sold for 1 yuan, what courage is required?” At that time, NetEase’s cash per share was 4 yuan, yet its stock price was 1 yuan.

Thinking of A-shares as gambling is a big mistake. It is value investors who truly make profits. The 茅台 段永平 invested in has not been touched for more than a dozen years. Finally, what he believes in is fate. You will surely become the person you are meant to be. Speculators may not change, but those who agree with value investing will become such people. That’s why 段永平 eats with バフェット.