Duan Yongping adheres to the value investing philosophy, advocating for 'doing the right thing and doing things right.' Although he has not specifically commented on Bitcoin investments, we can glean the following insights from his investment philosophy:
Be cautious about risks
Duan Yongping emphasizes that investors should not always think about making quick money but should earnestly do the right things to avoid pitfalls. Bitcoin prices are highly volatile, with potential fluctuations of thousands of dollars in a short time, making it difficult for investors to predict future trends and very easy to lose everything in price volatility. Investors should fully recognize the risks associated with Bitcoin and avoid blindly following trends to prevent significant losses.
Value investing is important
Duan Yongping believes that the key to value investing lies in focusing on business models and future cash flows, and only investing when it can generate profit. Bitcoin itself does not generate cash flow, making it difficult to evaluate using traditional value investment methods and hard to determine its intrinsic value. This means investing in Bitcoin may not align with the principles of value investing, and investors need to consider carefully.
Avoid blind investment
Duan Yongping stated that he would not quickly judge whether a company is worth long-term investment, but would make decisions after long-term accumulation and in-depth research. The Bitcoin market lacks effective regulation and mature market mechanisms, and market manipulation is quite common, making it difficult for ordinary investors to understand its true situation and potential risks. Therefore, investors should thoroughly understand the technical principles, market conditions, and regulatory policies of Bitcoin before investing, to avoid blind investment.
Adhere to investment principles
Duan Yongping adheres to the principle of 'do not invest if you do not understand.' As a new investment category, Bitcoin involves complex underlying technology and market mechanisms that ordinary investors may find difficult to fully grasp. If there is a lack of sufficient understanding of Bitcoin's operating mechanism and potential risks, one should follow Duan Yongping's principle and not easily venture into Bitcoin investments.
Resist the speculative mindset
Duan Yongping emphasizes that some investors fall into difficulties due to the eagerness to make quick money. Many people investing in Bitcoin often harbor a speculative mindset and a desire for overnight wealth, which can lead to poor decision-making during market fluctuations. Investors should avoid being tempted by short-term gains, establish a long-term investment philosophy, and approach investment returns rationally.
