Common Sense (Pingchangxin)
“All our success comes from ‘Benfen + Common Sense’”
📌 Concept Analysis
Common Sense = Returning to the essence of things, viewing everything rationally, not being carried away by short-term fluctuations and emotions.
Common Sense = rational = returning to the essence of things. When you have Common Sense, you ask: “Has this company’s business gotten worse?” rather than “The stock price dropped — should I cut my losses?”
💡 Core Understanding
1. Common Sense is rationality — returning to the essence of things.
Benfen and Common Sense are core secrets of BBK’s Corporate Culture.
2. Common Sense is something already within you; it’s only discovered through making mistakes and suffering losses.
Common Sense isn’t learned; it’s gradually uncovered through mistakes and reflection.
3. Common Sense is uncommon — ordinary people find it genuinely hard to achieve.
This is why most people become emotional during stock price volatility — achieving true rationality is far harder than imagined.
4. Common Sense is “clarity of mind” — the psychological foundation for doing right things.
Duan cites the Qingjing Jing (Scripture of Clarity and Stillness): “When humans can maintain constant clarity, heaven and earth all return to them.” Common Sense IS clarity of mind — what Buddhism calls supreme wisdom. “Only with Common Sense can one practice Benfen.” Returning to clarity of mind and persisting in doing right things — that process IS Benfen. (2018-12-17, Business Logic Chapter)
5. Professional investors need Common Sense most — don’t be a professional investor without it.
Common Sense is the fundamental for investors to remain rational amid market fluctuations. (2011-03-08, Investment Logic Chapter)
❓ Selected Q&A
Q: How do you understand the role of Common Sense in investing?
A: “Common Sense,” simply put, means returning to the source of things. Knowing what “the source of things” means isn’t easy. For example in investing, what you’re buying is a company’s future net cash flow — everything else is irrelevant. But figuring out a company’s future cash flow is extremely difficult. When you can’t figure out a company’s future cash flow, what exactly are you buying? (Investment Logic Chapter)
Q: Why don’t you recommend becoming a professional investor?
A: I’ve always believed if someone is still wrestling with these kinds of questions, they shouldn’t become a professional investor — otherwise it’ll be very hard to maintain Common Sense. My company doesn’t generate any cash flow for me; I haven’t needed it for ages. (2011-03-08, Investment Logic Chapter)
Q: What’s the relationship between Common Sense and Benfen?
A: Common Sense essentially means at any time — especially when facing temptation — being able to block out all external interference, return to the essence of things (the origin), distinguish right from wrong, and know what constitutes doing right things. (2016-10-12, Business Logic Chapter)
📖 Case Study Breakdown
Common Sense When NetEase Dropped Below $1
When Duan bought NetEase in 2002, its stock had fallen from its peak to under 1, my buy orders probably accounted for about half of all daily volume over those two-plus months.” The ability to keep buying amid extreme panic IS precisely the embodiment of Common Sense — he focused on the company’s future cash flows, not on stock price.
Common Sense During the Maotai Plasticizer Scandal
In 2012 during the Maotai plasticizer scandal, the stock price crashed. Duan bought Maotai at around ¥180 based on “right business + right people + right price.” Amid market panic, people with Common Sense would ask: “Has Maotai’s business model changed?” rather than “How much further will the price drop?”
⚠️ Common Pitfalls
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❌ “Common Sense means numbness — indifferent to gains and losses” — Common Sense IS “rational” — it doesn’t mean not caring; it means caring about company fundamentals rather than stock price volatility. When prices drop, people with Common Sense ask “has the company’s business worsened?” rather than panic-selling. (Source: Stanford 2018 speech)
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❌ “Common Sense is innate — some people just can’t do it” — “Maintaining it isn’t hard because it’s right there (it’s something already inside you). Discovering it comes through making mistakes and suffering losses.” Common Sense exists innately in everyone — it just needs mistakes and reflection to uncover it. (2018-09-30, Stanford SDL Dialogue)
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❌ “Having Common Sense qualifies you for professional investing” — Common Sense is necessary but not sufficient. “If you’re still thinking about how much steady cash flow you need, you’d better not become a ‘professional investor’” — you also need the capability of truly understanding companies. (2011-03-08, Investment Logic Chapter)
💬 Original Quotes
“All our success comes from ‘Benfen + Common Sense.’ Common Sense is rationality — returning to the essence of things, doing right things, and doing things right.” (Source: Stanford SDL Dialogue, 2018-09-30)
“How to discover and maintain Common Sense? Maintaining isn’t hard because it’s right there (it’s something already inside you). Discovering comes through suffering losses. Because without Common Sense, as soon as you lose rationality you’ll take a fall.” (Source: Stanford SDL Dialogue, 2018-09-30)
“Jack Ma once said: ‘Ordinary people can hardly have Common Sense, so Common Sense is actually UN-common sense!‘” (Source: Stanford SDL Dialogue, 2018-09-30)
“Common Sense essentially means at any time — especially when facing temptation — being able to block out all external interference, return to the essence of things (the origin), distinguish right from wrong, and know what constitutes doing right things.” (2016-10-12, Business Logic Chapter)
“The Qingjing Jing says ‘When humans can maintain constant clarity, heaven and earth all return to them.’… Common Sense is essentially this meaning of clarity. Only with Common Sense can one practice Benfen.” (2018-12-17, Business Logic Chapter)
🔗 Related Nodes
Upstream Concepts (prerequisites for understanding this concept): Benfen · Buying Stocks Means Buying Companies
Downstream Concepts (conclusions derived from this): Long-Termism · Selling Logic · Concentrated Investing · Macro and Markets · Golf & Investing · Short Selling
Related People Duan Yongping
平常心
“我们所有的成功，都来自于’本分+平常心’”
📌 概念解析
平常心 = 回到事物的本原，理性地看待一切，不被短期波动和情绪带走。
平常心 = 理性（rational）= 回到事物的本原。当你有平常心的时候，你会问：“这家公司的生意变差了吗？“而不是”股价跌了，我要不要止损？”
💡 核心理解
1. 平常心就是 rational（理性），就是回到事物的本原。
2. 平常心是内心已有的东西，靠吃亏才能发现。
平常心不是学来的，是通过犯错和反思慢慢发现的。
3. 平常心是不平常的，普通人很难真正做到。
这也是为什么大多数人在股价波动时会情绪化——做到真正的理性，比想象中难得多。
4. 平常心就是”清净心”，是做对的事情的心理基础。
段永平引用《清静经》：“人能常清静，天地悉皆归”。平常心就是清净心，是佛家所说的无上智慧。“只有平常心才能本分。“回归清净心，做正确事情的这个过程的坚持，就是本分。（2018-12-17，商业逻辑篇）
5. 职业投资者最需要平常心——没有平常心就不要做职业投资。
平常心是投资者在市场波动中保持理性的根本。（2011-03-08，投资逻辑篇）
❓ 精选问答
问：如何理解平常心在投资中的作用？
答：“平常心”简单讲就是回到事物的本源，知道什么是”事物的本源”不是件容易的事。比如投资，买的就是公司未来的净现金流，别的都是没关系的。但要搞明白公司未来的净现金流是件非常困难的事情。在搞不清公司未来现金流的前提下的投资买的到底是什么呢？（投资逻辑篇）
问：为什么不建议做职业投资者？
答：我反正一直认为如果谁还在为这些问题纠结的时候，就最好不要做职业投资，不然很难保持平常心。我们公司不给我产生任何现金流，我早就不需要了。（2011-03-08，投资逻辑篇）
问：平常心和本分是什么关系？
答：平常心其实就是在任何时候，尤其是在有诱惑的时候，能够排除所有外界的干扰，回到事物的本质（原点），辨别事情的是非与对错，知道什么是对的事情。（2016-10-12，商业逻辑篇）
📖 案例拆解
网易跌破1块钱时的平常心
段永平在2002年买入网易时，网易股价从最高点跌到不足1美元，市场一片恐慌。他”从开始买到网易跌破1块钱满3个月的那天总共两个多月的时间里，每天的买单可能有一半都是我的”。这种在极度恐慌中持续买入的能力，正是平常心的体现——他关注的不是股价，而是公司的未来现金流。
茅台塑化剂事件时的平常心
2012年茅台塑化剂事件，股价暴跌。段永平在约180元买入茅台，理由是”right business + right people + right price”。市场恐慌时，有平常心的人会问：“茅台的生意模式变了吗？“而不是”股价还会跌多少？“
⚠️ 常见误区
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❌ “平常心就是麻木，对涨跌无所谓” — 平常心就是”rational（理性）“——不是不关心，而是关心的是公司基本面，而不是股价波动。股价跌了，有平常心的人会问”公司的生意变差了吗”，而不是恐慌抛售。（来源：2018年斯坦福演讲）
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❌ “平常心是天生的，有些人就是做不到” — “保持不难，因为它就在那儿（是内心已经有的东西）。发现嘛，靠吃亏。“平常心是每个人内心本有的，只是需要通过犯错和反思才能发现。（2018-09-30，斯坦福SDL对话）
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❌ “有了平常心就可以做职业投资” — 平常心是必要条件，但不是充分条件。“如果你还在想需要多少稳定现金流的时候，最好还是不要做’职业投资者’“——还需要真正看懂公司的能力。（2011-03-08，投资逻辑篇）
💬 原文金句
“我们所有的成功，都来自于’本分+平常心’。平常心，就是rational（理性），就是回到事物的本原，就是做对的事情，和把事情做对。“（来源：斯坦福SDL对话，2018-09-30）
“怎么发现并保持平常心？保持不难，因为它就在那儿（是内心已经有的东西）。发现嘛，靠吃亏。因为没有平常心，一不rational就会栽跟头。“（来源：斯坦福SDL对话，2018-09-30）
“马云还说过一句话：‘平常人是很难有平常心的，所以平常心也是不平常心！’“（来源：斯坦福SDL对话，2018-09-30）
“平常心其实就是在任何时候，尤其是在有诱惑的时候，能够排除所有外界的干扰，回到事物的本质（原点），辨别事情的是非与对错，知道什么是对的事情。“（2016-10-12，商业逻辑篇）
“《清静经》上说’人能常清静，天地悉皆归’……平常心其实就是这里清净的意思。只有平常心才能本分。“（2018-12-17，商业逻辑篇）
🔗 关联节点
上游概念（理解这个概念的前提）： 本分 · 买股票就是买公司
下游概念（由此推导出的结论）： 长期主义 · 卖出逻辑 · 集中投资 · 宏观与市场 · Golf与投资 · 做空
相关人物 段永平