Ben Fen (Duty/Integrity)
Selected Quotes on Business Philosophy & Benfen (Doing What’s Right)
💡 Core Golden Quotes
- “Integrity and honesty—integrity. This is what all great enterprises have in common, and it’s the biggest ‘funnel’ for problematic enterprises”
- “Truly excellent sustainable enterprises mostly don’t focus on profits—profits are just a natural result”
- “Apple is a rare enterprise that can maintain long-term focus on ‘doing the right thing’”
- “When good companies make mistakes, it’s often a buying opportunity”
- “Enjoying a company’s growth is far better than letting your emotions swing with stock prices”
❓ Selected Q&A
Q: What are the “funnel” principles for selecting companies—that is, which principles must enterprises not violate?
A: Integrity and honesty—integrity. This is what all great enterprises have in common, and it’s the biggest “funnel” for problematic enterprises. (2010-10-22)
Q: How should we understand “truly excellent sustainable enterprises mostly don’t focus on profits”?
A: Actually, truly excellent sustainable enterprises mostly don’t focus on profits. Profits are just a natural result—it’s like having profits chase after you. (2011-01-28)
Q: Without the constraint of “earning through proper means,” what happens with profit-driven approaches?
A: Without the constraint of “earning through proper means,” profit-driven approaches easily lead to unscrupulous methods. This problem is actually very serious in China right now. (2010-06-09)
Q: How should we understand that Apple is rare in maintaining long-term focus on “doing the right thing”?
A: Let me mention something I particularly like about Apple: Apple is a rare enterprise that can maintain long-term focus on “doing the right thing.” Most people when investing are accustomed to checking whether they’re “doing things right,” which easily leads them into focusing on short-term performance. Even great enterprises may make mistakes during the process of “doing the right thing” because “doing things right” often takes time. So-called “long-term investing” from one perspective means being able to believe that capable companies that persist in “doing the right thing” will eventually “do things right.” (2013-02-13)
Q: From a 5-to-10-year perspective, the CEO is crucial. From an even longer perspective, what’s more important?
A: From a 5-to-10-year perspective, the CEO is crucial. From a 10-to-50-year perspective, the board matters because boards can find good CEOs. From an even longer perspective corporate culture is more important because good corporate culture can sustain a good board. GE is a good example. Good companies being good companies inevitably have some good products. But so-called good products have very limited lifespans. So-called good business models can dramatically extend good products’ lifespans. (2010-04-03)
Q: You said right business is most important and right price isn’t as important—what does that mean?
A: Right business is most important because right people in right business can fully demonstrate themselves. Right price isn’t as important because time reduces its importance. (2013-04-21)
Q: How should we understand that when good companies make mistakes, it’s often a buying opportunity?
A: Facebook’s original mission was “to connect the world” but didn’t pay attention to privacy. Now the mission remains but privacy has become a prerequisite. When good companies make mistakes, it’s often a buying opportunity. (2019-03-28)
Q: How should we understand that enjoying company growth is far better than following stock emotions?
A: Yes, enjoying a company’s growth is far better than letting your emotions swing with stock prices. (2017-03-16)
Q: How should we understand that all our success comes from benfen + ordinary mindset?
A: All our success comes from “benfen (doing what’s right) + ordinary mindset (Pingchangxin).” Ordinary mindset means rationality—returning to the essence of things, doing the right thing, and doing things right. Stop Doing List talks about doing the right thing, but doing the right thing must be implemented by not doing wrong things. Many people often do things they know are wrong because they can’t resist the temptation of short-term gains. (2018-09-30, Stanford)
Q: What’s the definition of a good business model?
A: A good business model shouldn’t be mediocre at generating profits over the long term, though it might be in the short term. I think the definition of “good business model” includes strong future profitability—otherwise it wouldn’t be a “good business model.” Future refers to the entire lifecycle of the enterprise. (2013-04-21)
Q: How do you understand “benfen”?
A: Benfen (doing what’s right) means doing the right thing, not doing wrong things. Benfen isn’t a technique; it’s a way of thinking. When you discover you’re wrong, stop—no matter the cost, it will always be the smallest cost. (Investment Logic Chapter)
Q: What makes a good company?
A: A so-called “good company” I think should be a principled company, not simply a profit-driven one. It’s a company that knows to do the right things (or knows what things shouldn’t be done) and then pursues high efficiency in doing things right. (2011-09-27)
🔗 Related Notes
Related Concepts Benfen (Doing What’s Right) · Corporate Culture · Pursuit Beyond Profit · Stop Doing List · Ordinary Mindset (Pingchangxin) Related People Duan Yongping · Warren Buffett Related Companies Apple · BBK · OPPO Related Topics How to Judge a Good Company · Criteria for Good Companies
商业哲学与本分篇精选
💡 核心金句
- “正直和诚信——integrity。这是所有great企业的共性，也是出问题的企业的最大漏斗”
- “真正好的能持续经营的企业大多都不是着眼于利润的，利润不过是水到渠成的结果”
- “苹果是非常难见到的能够长期focus在做对的事情的企业”
- “好公司犯错误时往往是买入的机会”
- “享受公司成长远好过心随股动”
❓ 精选问答
问：选企业的”漏斗”，就是哪些原则是企业不能违背的？
答：正直和诚信——integrity。这是所有great企业的共性，也是出问题的企业的最大”漏斗”。（2010-10-22）
问：真正好的能持续经营的企业大多都不是着眼于利润的，这句话怎么理解？
答：其实真正好的能持续经营的企业大多都不是着眼于利润的，利润不过是水到渠成的结果而已，就是所谓让利润追着自己跑的那种。（2011-01-28）
问：如果没有”取之有道”的约束，利润导向会怎样？
答：如果没有”取之有道”的约束，利润导向很容易不择手段。国内现在这个问题实际上非常严重。（2010-06-09）
问：苹果是非常难见到的能够长期focus在”做对的事情”的企业，这句话怎么理解？
答：说一点我特别喜欢苹果的地方：苹果是非常难见到的能够长期focus在”做对的事情”的企业。多数人在投资时很习惯去看有没有”把事情做对”这点，从而会很容易掉进短期表现当中。即使是伟大的企业在”做对的事情”的过程当中也是可能会犯错的，因为”把事情做对”往往需要一个过程。所谓”长期投资”从某种角度上说，就是要能够相信坚持”做对的事情”的有能力的公司最后会”把事情做对”。（2013-02-13）
问：从5年10年的角度看，CEO至关重要，从更长的角度看什么更重要？
答：从5年10年的角度看，CEO至关重要。从10-50年的角度看董事会很重要，因为董事会能找出好的CEO。从更长的角度看企业文化更重要，因为一个好的企业文化可以维持有一个好的董事会。GE就是一个好例子。好的公司之所以是好的公司，必然会有些好的产品。但所谓好的产品的寿命是非常有限的。所谓好的生意模式可以让好的产品的寿命大幅度提高。（2010-04-03）
问：right business最重要，right price则没那么重要，这是什么意思？
答：right business最重要，因为right people在right business里能充分体现出来。right price则没那么重要，因为时间可以降低其重要性。（2013-04-21）
问：好公司犯错误时往往是买入的机会，这句话怎么理解？
答：FB原来的使命是”连接世界”但没有注意隐私，现在使命不变但注重隐私已经是前提了。好公司犯错误时往往是买入的机会。（2019-03-28）
问：享受公司成长远好过心随股动，这句话怎么理解？
答：是的，享受公司成长远好过心随股动。（2017-03-16）
问：我们所有的成功，都来自于本分+平常心，这句话怎么理解？
答：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。Stop Doing List（不为清单），说的是做对的事情，但做对的事情，要落实在不做不对的事情上。很多人经常做一些明知是错的事情，是因为抵挡不了短期利益的诱惑。（2018-09-30，斯坦福）
问：好的商业模式的定义是什么？
答：好的商业模式不应该长期获利平平，但短期有可能。我认为”好的商业模式”的定义就包含未来获利能力强，不然就不是”好的商业模式”。未来指的是企业的整个生命周期。（2013-04-21）
问：如何理解”本分”？
答：本分就是做对的事情，不做不对的事情。本分不是一个技巧，是一种思维方式。发现错了就要停，不管多大的代价都是最小的代价。（投资逻辑篇）
问：什么是好公司？
答：所谓的”好公司”我觉得应该是有原则的公司，不是单纯利润导向的公司；是那些知道要做对的事情（或者说，知道什么样的事情不该做），然后去追求高效率把事情做对的公司。（2011-09-27）
🔗 相关笔记
相关概念 本分 · 企业文化 · 利润之上的追求 · Stop Doing List · 平常心 相关人物 段永平 · 巴菲特 相关公司 苹果 · 步步高 · OPPO 相关主题 如何判断一家好公司 · 好公司的标准