The most dull, most common, and most whimsical tricks have made Duan Yongping
In the past three decades, the Chinese venture capital industry has experienced a history from 0 to 1. The birth, growth and growth of Chinese technology Internet companies have a great relationship with venture capitalists. Today, the China Fund Industry Association has over 20,000 funds. "Deep Net" launched a series of reports on the 30-year history of China Venture Capital, and reviewed the ten most representative investors in the 30 years of this big fish and passion. It is for the series of reports II.
Author: Xue Fang Editor: Xiao Hong
In 2019, Shen Nanpeng, a partner of Sequoia Capital, was asked in an interview “What have you learned from other investors?” Shen Nanpeng replied: For example, Duan Yongping, who is extremely focused on several stocks or several companies, earns a very high return in the secondary market through his own foresight.
As early as 2001, Duan Yongping purchased 2.05 million shares before and after the price of less than one US dollar, accounting for 6.8% of Netease, and received a return of over 100 million US dollars; when Jobs was alive, Duan Yongping had a heavy position in Apple, and the market value of Apple in 2018 broke through. Trillion, earned pottery … …
Duan Yongping, born in the 1960s, in 1989, Duan Yongping became the director of Zhongshan Yihua Group's daily chemical electronics factory. In just three years, he created a production value of 1 billion yuan. “Little bully”; 1995, Duan Yongpingcheng Backgammon Electronics Co., Ltd., BBK copied the success of the bully.
Duan Yongping is known as China's Buffett, and some media even call it “Duan Feite”; but in recent years, Duan Yongping has been frequently concerned by domestic media because of his primary market investment, OPPO, vivo and fight.
In 2016, OPPO and vivo shipped more than Xiaomi, occupying half of China's mobile phone industry. Duan Yongping is an investor in OPPO and vivo; in 2018, many of them went public, and its founder Huang Wei said frankly, “In my angel Among the investors, the most influential to me is Duan Yongping. ”
People can't step into the same river twice. The primary market is good, the secondary market is worth mentioning; the PC Internet period is good, and the mobile Internet period is worth mentioning; every time you start, Duan Yongping can find the target of success.
Looking back on Duan Yongping's more than ten years of corporate career, he is up and down. Regardless of the media and the public, everyone likes to go to his wonderful story. “But his conservative achievements have made him. ”—— Asia Weekly is so judged.
Duan Yongping's business intelligence & mdash; — & ldquo; dare to be the world, the post-striking first, traversed the time, is also the reason for the current OPPO and vivo success. In the secondary market, Duan Yongping, who had experience in entrepreneurship, really understood Buffett’s theory of value investment, “thinking that it’s a matter of understanding what you really understand”.
Duan Yongping used to like Go. "Southern People Weekly" wrote in the article: Duan Yongping's most appreciated is "Stone Buddha", Li Changyi, incredible juvenile and pragmatic, the only pursuit is to maximize the utility, using the most secure, safest and easiest way The situation leads to victory.
This is very similar to Duan Yongping's investment style. The following is the most bland, most common, and most whimsical tricks ——“this hand”, Shen, steady, accurate, step by step, to wait, Never take risks easily and leave room forever.
40Retired at the age of
In 2001, at the age of forty, Duan Yongping ushered in a huge turning point in life.
“Green Card was my wife who applied for me in the United States in 2000. I used to think that it took many years to get this thing. I didn’t expect it to be approved in half a year. …… I promised to go to the United States before my wife got married. Otherwise, people will not marry me. It is impossible to let my wife be in the United States, I am in China, what else does this family have to do? ”
Duan Yongping met his wife in 1998. Liu Wei was the chief photojournalist of The Palm Beach Post in the United States. In the time of returning to visit relatives, he met with Duan Yongping. After Duan Yongping and Liu Wei knew each other only two months later, the two married.
In 2001, Duan Yongping, 40, got the US green card. Duan Yongping did not want to renege on his words. He kept his promise to his wife and flew to the other side of the ocean — — Palo Alto, California, which is the center of Silicon Valley. The company's affairs, Duan Yongping has arranged the person in charge.
At that time, the restructuring of BBK was completed, Shen Wei was responsible for the communication business; Chen Mingyong was responsible for the audio-visual business, and Huang Yihe Miao was responsible for the education of electronic business; in 1999, Duan Yongping took these three major businesses according to people, independent ownership, and no subordination. The principle was established as three independent companies.
Some individual shareholders (Duan Yongping, Shen Yi, Huang Yihe, Chen Mingyong, etc.) hold shares in three companies at the same time, and Duan Yongping holds about 10% of each of the three shares. It is precisely because of this split that it has created conditions for the extension of OPPO, vivo and other brands.
In 2001, Duan Yongping took the lead, and the three companies spent a total of 30 million yuan to register OPPO, Chen Mingyong as the person in charge. When Yongping thinks that the company wants to be global in the future, it needs an international brand name. In 2000, he hired a team of European design brands, and OPPO was born.
The company's business is still developing, but Duan Yongping had to say goodbye. He told the team: "Let's go and do it, do a good job, don't close the door, don't have a burden!" ”
Duan Yongping opened his retiring career, "I thought at that time, if I want to live here in the future, what am I doing here?" I can't stay at home all day. ”
Duan Yongping thought of investing. He bought a lot of investment books, K-line chart analysis, the probability of rising and falling, how to measure the market … … Duan Yongping looked confused, he did not understand.
Until Duan Yongping met Buffett's book.
“Buy a company's stock is equivalent to buying this company, buy some or all of it”. Duan Yongping said, “Investment is actually very simple, but simplicity is not equal to easy. & rdquo; & ldquo; buy a stock, is to buy a business now and in the future. You must understand the business, look at the good business, and buy when its value is undervalued. ”
Duan Yongping understood Buffett's book, “I invested in any company that should be the same as when I stepped in.” The difference is that I used to be a step by step. & rdquo; More than ten years of entrepreneurial experience has helped Duan Yongping's investment, "I am a thick and thin, not doing business for so many years, it is difficult to see the good and bad business. ”
After the middle
Undoubtedly, whether Duan Yongping is a professional manager, “small bully” is still the BBK as its founder. The rise path of the two companies is roughly the same ——“after the world, the post-contention” . Duan Yongping philosophized his business operation philosophy and then practiced it in practice.
Duan Yongping said this when he communicated with Stanford students last year, "All masters are dare to be after the world, but they are doing better than others." After dare to be the world, it refers to the product category, because you guess the market demand is often difficult, but others have already defined the demand, you are more certain to meet this demand. ”
Duan Yongping was born in Nanchang, Jiangxi Province in 1961. After the Cultural Revolution, he was admitted to the Radio Department of Zhejiang University. In 1986, he was admitted to the Graduate School of Economics of Renmin University of China. In 1989, Duan Yongping came to the Guangdong Yihua Group Daily Chemical Factory and soon became the factory manager.
This is a small factory with a loss of two million a year. How to turn losses into profit is the first real problem in front of Duan Yongping. Duan Yongping chose the small fighter game that imitated Nintendo's red and white machine as the first product in the test water market, and used sales to drive sales growth. In 1991, he spent 400,000 yuan to cooperate with CCTV to engage in an activity, “Having a small bully and playing a million households”, “Little Fighter Competition”, the bully game machine became famous all over the world. The sales volume has increased significantly.
This also formed an important concept of Duan Yongping's business, "Dare to be the world, after the middle of the competition". The preceding sentence refers to the “doing the right thing”, and the latter sentence refers to “doing things right”.
In 1993, Duan Yongping created a computer-like new product, Xiaobawang Learning Machine, and Duan Yongping invited the well-known Jackie Chan as the brand spokesperson. In 1994, “small bully” had an annual income of 400 million. In the second year, it exceeded 1 billion and the market share was nearly 80%.
However, as a professional manager, Duan Yongping, in addition to receiving salary, does not participate in the company's revenue share, nor does it have a mechanism to motivate subordinate managers. Duan Yongping proposed to the group to carry out a joint-stock reform of “small bully” but was rejected. Duan Yongping chose to leave.
At that time, the bully found several middle-level cadres who were about to leave, asking them why they would not stay and continue to develop. One manager said: “The captain is not on board, and the sailors do not know where the ship will go, so they ask to disembark. ” Lost Duan Yongping's little bully, eclipsed, and retired from the stage center a few years later.
In September 1995, Duan Yongping of Dongguan Changan Town established a new company & quot; BBK & quoquo; This is a company that is almost wholly owned by the company when it is born. Managers and employees can buy shares. If employees have no money, Duan Yongping will lend them money and then repay the profits and dividends of the shares.
In the form of shareholding, Duan Yongping bundled the interests of the company with the personal interests of employees. Under this setting, Duan Yongping later only accounted for about 17% of the step by step.
Duan Yongping’s insights are related to his understanding of human nature and wealth. “Chinese people are often able to get rid of poverty together, but it’s hard to get rich together. Once a company is bigger, it’s separated, and it’s a lawsuit …&hellip To do it for a long time, we must engage in a shareholding system. ”
And once the "small bully" dealers, also actively took the money to buy shares, following Duan Yongping. In 1997, due to the disagreement with “small bully”, 24 dealers collectively went to BBK. There are teams and sales channels. Backgammon originally focused on cordless phones and student computers. In 1997, it entered the VCD market again.
Regarding the product, Duan Yongping believes that “the most important thing is to discover and meet the needs of consumers. It is not easy to do this. For example, R&D should be based on the needs of consumers and respect the opinions of consumers. Market research should be conducted to develop products accepted by ordinary people, rather than differentiated for differentiation. ”
Backgammon is still the product strategy of “Dare to be the world”, cordless phones, student computers, and VCDs. These products were not the first to be invented by BBK, but after entering BBK, they came to the top.
Advertising marketing is still a tool for BBK to open up the market. In 1996, he dropped 80 million at the CCTV prime time advertising bidding meeting and won the 5-second standard after the news broadcast. In the following years, he cooperated with Jet Li and customized the songs that the world has its own justice, paying for the total return, saying that it is better to do it, and to do the best.
The marketing of Cassidy and Backgammon is too strong, and the public has easily set a tone for it. This is a marketing-oriented company. Duan Yongping obviously does not think so.
“Marketing is not the essence, the essence is the product. The most important thing about marketing is that you can't say it. Corporate culture is the most important. Ads can only affect up to 20% of people, and the remaining 80% are affected by this 20%. Marketing is not good, at most, it is slower to sell … … & rdquo; In 2018, Duan Yongping said in Stanford and student exchanges.
For Duan Yongping, with the experience of operating the bully and step by step, after meeting Buffett’s value investment philosophy, he almost understood Buffett’s theory. From the perspective of value investment, his achievements only confirm Buffett's value investment theory.
Buffett's fans are all over the world. The nature of researching its value investment theory is also a large number of people, but Duan Yongping is certainly one of them. There are two reasons for this. The first is that BBK's entrepreneurial experience has enabled Duan Yongping to get financial. Freedom, the base of investment will naturally benefit, but the premise is accurate.
The second factor is, “a company, you have to find its value, it is a very difficult thing, so simple things are not equal to easy”.
In 2000, NetEase just listed on the NASDAQ, it caught up with the dot-com bubble. On the day of the listing, it fell from the issue price of 15.50 US dollars to 12.165 US dollars. In the worst case, it fell to 0.48 US dollars. The Nasdaq has a rule that the stock price will be less than one dollar and the company will withdraw from the market.
In Wuzhou Hotel in Shenzhen, Duan Yongping persuaded Ding Lei to insist. “What did you do after you sold the company? ”“ I sold the company and then opened a company. ”“You are not doing a company now, why not do it? ”
After Ding Lei left, Duan Yongping began to study Netease's financial report and finally decided to purchase. This also has a well-known story. Netease's share price continued to rise. Ding Lei, 32, became the richest man in China, and Duan Yongping realized a hundred times of investment income, and thus won the title of “Duan Feite”.
Duan Yongping has been very low-key after going to the United States. He returned to the public view of the media, precisely because he took a chance to eat with Buffett for $620,000.
In 2006, Duan Yongping became the first Chinese to have lunch with the stock god. At the dinner, Duan Yongping asked Buffett: “What can't be done in the investment?” Buffett replied: “Do not short, don’t borrow money, the most important thing is not to do things that you don’t understand. ”
Duan Yongping was criticized for making a show, but he was very indifferent: "I am not doing business with Buffett, I just want to give him a place to tell the audience that his things are indeed valuable." Unlike some people who want to ask for a secret recipe and a good idea, when they come out and see it, they can make a fortune. ”
After the meal, Duan Yongping accepted a wave of media interviews and broke his consistently low-key guidelines. However, this interview led to the expansion of Buffett’s value investment philosophy that Duan Yongping understood.
After a long period of time to look back at Duan Yongping and Buffett's dinner, it is more like Duan Yongping's acknowledgment of Buffett. He is a believer in Buffett. Therefore, when someone wants to learn how to invest in stocks, Duan Yongping will faintly say, "I have nothing to say, look at Buffett." ”
I thought it was a different matter to understand and understand.
In terms of investment logic, Duan Yongping was also deeply influenced by Buffett. There are no more than 10 companies that have actually reinvested their investments over the years, and three companies that are long-held are generally listed. Apple is a member of this list. In addition, Duan Yongping also bought shares in Vanke and Maotai.
Duan Yongping never speculates, does not invest in the field he does not know, and will be serious in the long-term holding of a firm enterprise.
Duan Yongping wrote a letter, "There is no right to speak without investigation. & rdquo; Before making a decision, he will go to the investment company's business and character information, read the company's business model.
Investor Lu Yue told Deepnet, “Duan Yongping is investing in the model of industrialists, and the wealth base will also determine different investment perspectives; from the perspective of industrial cycle and internal operations, more people will not see it. Information. ”
Duan Yongping has run a small bully and has run a step by step. He sees that the company has its own unique and precise side. In Duan's philosophy, a good company must cover two aspects, “do the right thing and do things right.” ”
“ The so-called & lsquo; Road & rsquo; is Do right things, that is to do the right thing; & squo; surgery & rsquo; is Do things right, that is, to do things right. What is the relationship between the two? I think the Tao should be prior to surgery, because as long as the direction is correct, even if the method used is a bit stupid, it will only go slower and will not go the wrong way. ” Duan Yongping elaborated.
If it is wrong, stop the loss in time.
Duan Yongping once told such a story to clarify its importance. “One time I was in the US, I was going to pick up a colleague at the airport. At first, it was estimated that I had to wait at the airport for an hour, so I spent one hour on the airport parking lot, and the colleague came half an hour earlier. At this time, the question is coming. Should I choose to drive the car directly or continue to consume the remaining half an hour? The conclusion is in fact self-evident, in reality people usually choose to drive away. ”
Duan Yongping seems to have deciphered the successful password, entrepreneurship, stock sales and investment. He has a philosophical methodology that has been formed over time. He shared his methodology in the blog and the public. A middle-level manager of the vivo has told Deepnet, “Look at the blog of A section, follow the A section to buy stocks, and many colleagues have earned”.
Why can Duan Yongping win?
Duan Yongping, who had experience in entrepreneurship, really understood Buffett’s theory of value investment. He told the audience that he did not understand it, and thought that there was a very long distance between understanding and understanding.
“It’s not particularly easy for every company to completely understand it completely. Sometimes it looks plausible. You feel that you understand it. In fact, you don’t understand it. It’s late when you find it. ” Duan Yongping said.
Trust and interest chain
After the BBK split, the three responsible persons have been using Duan Yongping's philosophy to run the business.
In 2001, Duan Yongping went to the United States as a shopkeeper. In 2002, Chen Mingyong, who was in charge of audiovisual business, encountered difficulties. In 2002, China joined the WTO. International companies such as Sony and Philips demanded that the Chinese DVD industry pay royalties. Chen Mingyong was forced to Turned off the company.
Chen Mingyong, now the head of OPPO, graduated from the Department of Information and Electronic Engineering of Zhejiang University in 1992 and is the younger brother of Duan Yongping. Since the "small bully" period has been followed by Duan Yongping. After the DVD business was frustrated, Chen Mingyong invested heavily in research and development to develop the OPPO brand.
In 2005, OPPO launched X9MP3, which is called “Most Milestone of Domestic MP3”. In 2008, OPPO began to enter the mobile phone field.
OPPO company, the core values are "this point" & rdquo; & mdash; & mdash; & ldquo; this score is higher than integrity, even if there is no commitment, what should be done to do it.
In addition, Duan Yongping's understanding of equity incentives was quite profound, and OPPO also used equity allocation to motivate employees. According to media reports, OPPO employees currently hold more than 60% of their shares. Some people in the OPPO executive team were demoted and transferred, but few left.
Chen Mingyong was responsible for the gradual decline of the backgammon communication business when OPPO developed the MP3, and began to launch the mobile phone business.
In 2009, in order to go international, Shen Wei launched the vivo brand, and he began to use the mobile phone as the main direction. Shen Yu, a native of Jiujiang, Jiangxi, was only an employee of the production department in the early years. With his outstanding personal ability, he became the person in charge of the production of “Little Fighter”.
He is still a low-key person than Duan Yongping, and he rarely appears in the media, without Weibo.
As we all know, when OPPO and vivo entered the mobile phone field, the mobile phone market giants were everywhere, Nokia and Motorola still existed, and rising stars such as Samsung, Apple and HTC came to the fore. Lenovo, Huawei, ZTE and other domestic brands were not to be underestimated. The OPPO and vivo do not seem to have a chance.
Duan Yongping returned to China two or three times a year. OPPO and vivo maintain an office for Duan Yongping. The middle-level people in the above-mentioned vivo told Deepnet that in the early years, Duan Yongping once came back and severely criticized the management. In a conference room, an ashtray was placed on a table in the conference room, but a piece of paper was attached to the wall —— no smoking. This detail gave Duan Yongping a conclusion that such a small thing is full of contradictions, and other things do not seem to have to be seen.
Seeing the big and small, Duan Yongping observed that things have their own unique dimensions.
On the NetEase blog, Duan Yongping wrote such a story: "I have bought a lot of GE stocks a few years ago. One day I went to GE's company home page and saw that I couldn't find me at Jack · His description of GE culture is seen in Welch's book. It turned out that the CEO at the time had ‘ went to Welchization & rsquo; ” Later, Duan Yongping sold GE's stock. It turned out that he was right.
Duan Yongping believes in the power of culture, “In addition to the rules and regulations, many problems must be solved by culture”.
Taking vivo as an example, the executive team rarely has a KPI assessment. vivo does not pursue the process of controlling the process through standardization rules, but achieves this goal through mutual trust and a common interest chain.
It took ten years for Shen to understand the truth. Well done areas are often good values, and what is not done well is that values are not keeping up.
At that time, OPPO was a camera phone, mainly for the women's market, and vivo was a music phone, which was against the male market. China's mobile phone market has changed its banner. After a long period of time, OPPO and Vivo ran out. Their overall shipments accounted for half of the Chinese mobile phone market.
They may have realized Duan Yongping's philosophy ——“after the world, the middle and the first,”, "do the right thing, do things right".
Also recognize the values of Duan Yongping, as well as a lot of jaundice. Huang Wei has always regarded Duan Yongping as a teacher. He has seen Buffett with him. Buffett’s greatest inspiration for Huang Wei is to realize the power of common sense.
"Incoming one person in the opposite direction, if it is Yao Ming, you will see him at a glance; if you don't see it, it means that he is not Yao Ming. & rdquo; Huang Wei once told the "deep net."
More than more than 2018, the media was slashed by the media because of fakes and other issues. Huang Wei wrote an open letter to all employees and called on everyone to stick to their points.
This point is the influence of Duan Yongping's values.
Do what you need to do the risk
The primary market is also good, the secondary market is worth mentioning, Duan Yongping's philosophy about products and stock selection has been verified. what is the reason?
Duan Yongping said in an article entitled "Our Secrets", "People often say: advertising, employee share sharing, dealer stocks, network outlets, offline channels, etc., are all wrong. . Our secret is actually: the duty + normal heart. ”
When Duan Yongping was interviewed by Southern People Weekly, he explained that “this point”, “We are doing this, it is to do what you should do and take on the risks you can afford. I started in 1989 and later came back again. The conservative advantage is that we are still living healthier, which is actually rare in our peers. ”
Duan Yongping elaborated, “I understand that & lsquo; normal heart & rsquo; is the effort and struggle based on forgetting the victory and defeat of fame and fortune. For an entrepreneur, only by focusing on the long-term, and not taking care of the gains and losses of the moment, can we continue to grow and develop. ”
In this era of advocating speed and scale, "this point" & "quo", "normal heart", it sounds a bit out of place. Over the years, Duan Yongping has kept common sense. He is not in the crowd. He is almost popular. Duan Yongping has a clear-cut object.
“Independent innovation” is not mentioned in the national boom, Duan Yongping does not mention, “Why don’t we mention & rsquo; innovation & rsquo; this concept? Because innovation is easy to misunderstand, innovation for innovation, and the resulting product market is not acceptable, so that you will only die. ”
Duan Yongping is advocating "Don't be the world" ”, Lao Tzu said: & lsquo; I have three treasures, hold and protect, one is merciful, two embarrassed, three dare not for the world first & rsquo;. It is very important to build a corporate culture. “Dare to be the best in the world, and to fight for the future.” According to our strength and ability, this principle may take us many years. ”
“For example, when Microsoft was developing products such as Windows and Word, no product was the best in the world. It was to find out which product had a market and then to transfer it to the industry, and then make it the industry’s first. . Panasonic's old rival SONY has almost gone bankrupt twice, but it only had its first quarterly loss in 50 years before the year before, and the company has always been healthy. ” Duan Yongping said.
At one time, diversified development was regarded as a standard by some domestic enterprises, but Duan Yongping and his apprentices only ploughed in the subdivision, “I do not agree with the diversified development of enterprises. Because so far, no domestic company has really had such external and internal conditions. ”
When becoming bigger and stronger and becoming the target of many enterprises, Duan Yongping advocated “small and beautiful”, he said “normally”, BBK did not intend to go public, nor did it acquire, because “a car with a speed of 200, Already hitting the wall, what can I do at this time, only one dead road & rdquo;.
Someone once asked Duan Yongping what his greatest contribution he made when he retired. He said that it is a culture for BBK. It is this culture that allows step by step to continue to innovate. In the changing era and market, it still stands in the electronics industry.
Duan Yongping is still a philanthropist. In 2005, Duan Yongping and his wife established the Enlight Foundation, a family charity fund in the United States, which is mainly responsible for charitable donations in the field of education. In September 2008, they registered a Pingping Public Welfare Fund in China for education.
In these years, Duan Yongping has donated a total of 447 million yuan to Zhejiang University and Renmin University of China. Regarding his charitable acts, Duan Yongping commented, “I don’t think it’s great to be a charity. We just want to solve our own problems. What great contributions and role models to say are purely nonsense. I never thought about who I want to give. be role model. ”
In the Chinese venture capital circle, Duan Yongping has never been a typical professional investor, and he has rarely mixed circles, but he has established a set of his own investment philosophy.