NetEase网易

NetEase

“I remember a reporter once asking why I had so much courage to buy NetEase back then. I said: when something worth 10 yuan has someone crying and begging to sell it to you for 1 yuan, what courage do you need?” — Duan Yongping (2011-05-08)

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🏢 Basic Information

• Industry: Internet / Gaming
• Purchase time: Around 2002, when NetEase’s stock price fell below $1
• Purchase price: Approximately $0.8-$1 (at its lowest)
• Sale time: Around 2010, most sold at $30-$35 (added more when it rose 20-30x; ultimately sold at 100x+ returns)
• Investment return: Over 100x

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📅 Investment Timeline

Time	Event	Duan Yongping’s Judgment
2002	Bought at ~$1/share; bought nearly 500,000 shares on the last day	Bullish on gaming market, within 能力圈; viewed as buying a company — IPO status irrelevant
2002-2010	Held for 8-9 years, added more when up 20-30x	Used 平常心 to resist daily temptation from selling prices
~2010	Sold most at $30-$35	Swapped into GE and Yahoo
Later	Kept some NetEase shares	”I’ll always keep some NetEase stock”

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💡 Duan Yongping’s Core Views

Why Buy NetEase?

• Very familiar with gaming; was very certain they would make lots of money in the future — “I already had deep understanding of games when I was at Subor. This kind of understanding isn’t taught in school, not found in books, and can’t be seen in financial reports”
• Good 生意模式: Online games are products with considerable 差异化
• Extremely undervalued: Something worth 10 yuan being sold by someone crying and begging for 1 yuan

Why Able to Hold Through 100x?

• Understanding of company and its business — only possible if you can truly understand the company and business
• 平常心 — Don’t think about purchase cost; focus on understandable future cash flows
• 买股票就是买公司 — Treat stocks like non-public companies; once you stop looking at stock price fluctuations it becomes clear

Why Sell NetEase?

• Swap into GE and Yahoo (later all switched again to Apple)
• Ding Lei is a big kid — leaving that much money in his hands doesn’t feel safe. This reflects Duan Yongping’s concerns about NetEase’s cash management.

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❓ Selected Q&A

Q: Did buying NetEase back then require great courage?

A: I remember a reporter once asking why I had such courage to buy NetEase back then. I said: when something worth 10 yuan has someone crying and begging to sell it to you for 1 yuan, what courage do you need? (2011-05-08)

Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2011-05-08

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Q: Why did you add more when NetEase rose 20-30x?

A: Actually, when NetEase reached 20-30x we did add more positions. The main reason we could hold on was understanding of the company and its business, plus 平常心 — don’t think about your purchase cost; focus on future cash flows you can understand.

Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2010-05-13

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Q: Did you feel lonely buying NetEase?

A: Speaking of loneliness reminds me of when I first bought NetEase. From the start of my purchase until the day NetEase fell below 1 yuan for a full 3 months — over those two-plus months, probably half of all daily buy orders were mine (only a few thousand shares traded per day). It really felt quite lonely at the time, especially the last day when I suddenly bought nearly 500,000 shares. Apparently sellers that day were afraid of delisting after the 3-month period ended. My thinking was very simple: I’m buying a company — whether it’s listed or not doesn’t matter. Loneliness is sometimes indeed priceless.

Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2012-05-21

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Q: When someone insists on selling you gold at copper prices, do you need courage?

A: When someone insists on selling you gold at copper prices, you don’t need courage — you just need to confirm it really IS gold (it could be gold-plated iron or stone). Buying NetEase felt a bit lonely, like I was the only person in the whole world still buying.

Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2010-03-05

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Q: Why sell NetEase?

A: Because Ding Lei is just a big kid, leaving that much money in his hands doesn’t feel safe, even though the stock price may prove I sold wrong. (2018-09-30)

Calling Ding Lei a “big kid” is absolutely not meant derogatorily! “Big kid” means although he’s an adult, he’s very pure, doesn’t scheme against others, and is great to be friends with. As for selling most NetEase shares, facts have proven this was wrong, haha. Although at that time the sale was to switch to Yahoo, later everything got switched to Apple again — but if we’d kept everything until today the returns seem like they would have been even better.

Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2018-10-05

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Q: What enabled us to earn over 100x on NetEase?

A: We were able to make over 100x on NetEase because I already had deep understanding of games when I was at Subor. This kind of understanding isn’t taught in school, not found in books, and can’t be seen in financial reports.

Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2010-02-07

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Q: How do you view NetEase having too much cash on hand?

A: I remember long ago telling Brother Ding that NetEase’s biggest problem might be having too much cash. The cash now is obviously much more than back then, but Ding Lei seems not to have made any major mistakes despite having so much cash — which is very difficult to achieve. Even Old Ba (Buffett) used to say he tended to make mistakes when he had too much cash. If NetEase has confidence in their company’s future, share buybacks are always the best way to use cash (at reasonable prices).

Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2011-12-02

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Q: Is investing about making money?

A: Hehe, interesting question. I think for most people, investing is certainly about making money. The investment process itself is also enjoyable. So personally for me, enjoying the process might be more important since results aren’t that critical anymore. Though good results can help others too — that’s a nice bonus.

Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2010-04-24

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📊 Investment Insights

Core lessons from the NetEase case:

1. 能力圈 determines everything: Duan Yongping understood games, so he could buy when others were fearful and hold even when up 100x
2. 买股票就是买公司: Treat stocks like non-public companies and you won’t be affected by price fluctuations
3. 平常心: Don’t think about purchase cost; focus on understandable future cash flows
4. Loneliness is priceless: You’re buying alone while everyone else is selling
5. Don’t sell good companies lightly: Sold at 100x+ return; if hadn’t sold might be 500x by now — “so don’t sell good companies easily”

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💬 Original Quotes

“From the start of my purchase until the day NetEase fell below 1 yuan for a full 3 months — over those two-plus months, probably half of all daily buy orders were mine (only a few thousand shares traded per day). It really felt quite lonely at the time, especially the last day when I suddenly bought nearly 500,000 shares. Loneliness is sometimes indeed priceless.” (Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2012-05-21)

“Because Ding Lei is just a big kid, leaving that much money in his hands doesn’t feel safe, even though the stock price may prove I sold wrong.” (Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2018-09-30)

“Good companies are those that know how to spend money. In this regard NetEase isn’t quite a good company — there’s too much cash sitting idle. Cash sitting unused depreciates!” (Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2014-06-06)

“Personally, enjoying the process might be more important, since results aren’t that critical anymore.” (Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2010-04-24)

“We were able to make over 100x on NetEase because I already had deep understanding of games when I was at Subor. This kind of understanding isn’t taught in school, not found in books, and can’t be seen in financial reports.” (Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2010-02-07)

“When I sold, I’d made roughly 100x+. If I hadn’t sold, it could be 500x by now. So don’t sell good companies easily, haha.” (Source: Duan Yongping Investment Q&A Record (Investment Logic Volume), 2019-03-20)

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🔗 Related Notes

Related Concepts 能力圈 · 买股票就是买公司 · 平常心 · 长期主义 · 差异化 Related People 段永平 · 丁磊 Related Topics 段永平的经典投资案例 · 如何看待市场波动 · 卖出的逻辑：段永平为什么很少卖

网易

“记得以前有记者问为什么当年我那么有勇气买网易，我说10块钱的东西有人一块钱哭着喊着要卖给你，你要勇气干什么？” — 段永平（2011-05-08）

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🏢 基本信息

• 行业：互联网/游戏
• 买入时间：约2002年，网易股价跌破1美元时
• 买入价格：约0.8-1美元（最低时）
• 卖出时间：约2010年前后，大部分在30-35美元卖出（涨到20-30倍时还追加，最终100多倍卖出）
• 投资回报：100倍以上

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📅 投资时间线

时间	事件	段永平的判断
2002年	约1美元/股买入，最后一天一下买了接近50万股	看好游戏市场，在能力圈内；认为买的是公司，上不上市无所谓
2002-2010年	持有8-9年，涨到20-30倍时还追加	用平常心抵抗每天的卖价诱惑
2010年前后	大部分在30-35美元卖出	换仓GE和雅虎
后来	保留一些网易股票	”我会一直保留一些网易的股票的”

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💡 段永平的核心观点

为什么买网易？

• 非常懂游戏，当时非常确定他们将来会赚很多钱——“我在做小霸王时就有了很多对游戏的理解，这种理解学校是不会教的，书上也没有，财报里也看不出来”
• 生意模式好：网络游戏是有相当差异化的产品
• 价格极度低估：10块钱的东西有人一块钱哭着喊着要卖给你

为什么能拿住100倍？

• 对公司及其业务的了解——只有能看懂公司和生意才能做到这一点
• 平常心——不要去想买入的成本，把焦点放在能理解的未来现金流上
• 买股票就是买公司——把股票当成非上市公司来看，没有股价的变化就明白了

为什么卖网易？

• 换仓GE和雅虎（后来又都换了苹果）
• 丁磊是个大孩子，那么多钱放他手里不放心——这是段永平对网易现金管理问题的担忧

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❓ 精选问答

问：当年买网易需要很大勇气吗？

答：记得以前有记者问为什么当年我那么有勇气买网易，我说10块钱的东西有人一块钱哭着喊着要卖给你，你要勇气干什么？（2011-05-08）

来源：段永平投资问答录(投资逻辑篇)，2011-05-08

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问：网易涨到20-30倍时为什么还追加？

答：事实上，网易涨到20-30倍时我们还追加了一些。能够拿得住的最主要原因还是对公司及其业务的了解，还有就是平常心了，不要去想买入的成本，把焦点放在能理解的未来现金流上。

来源：段永平投资问答录(投资逻辑篇)，2010-05-13

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问：买网易时感觉孤独吗？

答：说起孤独，让我想起当年买网易的时候。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（每天只有几千股成交），当时确实感觉很孤独，尤其是最后一天，居然一下买了接近50万股。据说那天卖的人是害怕3个月满了会被摘牌。买的那个人的想法非常简单，认为买的是公司，上不上市无所谓。孤独有时候确实价值连城。

来源：段永平投资问答录(投资逻辑篇)，2012-05-21

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问：当有人非要把金子按铜的价钱卖给你的时候，你需要勇气吗？

答：当有人非要把金子按铜的价钱卖给你的时候，你是不需要勇气的，你只要确认那真的是金就行了（有可能其实是镀金的铁块或石头）。买网易时我觉得有点孤独，好像这个世界就我一个人再买。

来源：段永平投资问答录(投资逻辑篇)，2010-03-05

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问：为什么卖网易？

答：因为丁磊就是个大孩子，那么多钱放他手里不放心，虽然股价证明我可能卖错了。（2018-09-30）

说丁磊是个大孩子绝对不是贬义啊！大孩子的意思是虽然是大人，但非常单纯，不会算计人，做朋友很好啊。至于卖掉大部分网易股票，事实证明也是不对的哈，虽然当时卖是为了换Yahoo，后来又都换了苹果，但要都留到今天似乎收益好像还要好点。

来源：段永平投资问答录(投资逻辑篇)，2018-10-05

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问：我们在网易上赚到100多倍是因为什么？

答：我们能在网易上赚到100多倍是因为我在做小霸王时就有了很多对游戏的理解，这种理解学校是不会教的，书上也没有，财报里也看不出来。

来源：段永平投资问答录(投资逻辑篇)，2010-02-07

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问：网易账上现金太多，怎么看？

答：记得很久以前我就跟丁老大说网易的最大问题可能是现金太多。现在的现金显然已经比那个时候要多多了，但丁磊似乎没有因为有这么多现金而犯什么大错，这是非常不容易的事情。连老巴都说以前他现金一多就容易犯错。如果网易对自己公司的未来有信心的话，回购永远是最好的消耗现金的办法（在价格过得去的情况下）。

来源：段永平投资问答录(投资逻辑篇)，2011-12-02

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问：投资是为了赚钱吗？

答：呵呵，这个问题有意思。我想，对大多数人而言，投资当然是为了赚钱吧。投资的过程也是很有乐趣的。所以对我个人而言，享受过程可能更重要，因为结果已经不那么重要了。不过，好的结果还能帮到别人，也算是个不错的副产品。

来源：段永平投资问答录(投资逻辑篇)，2010-04-24

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📊 投资启示

网易案例的核心启示：

1. 能力圈决定一切：段永平懂游戏，所以能在别人恐惧时买入，也能在涨到100倍时还拿得住
2. 买股票就是买公司：把股票当成非上市公司来看，就不会被股价波动影响
3. 平常心：不要去想买入的成本，把焦点放在能理解的未来现金流上
4. 孤独是价值连城的：在别人都在卖的时候，你独自买入
5. 好公司轻易不要卖：当时卖了100多倍，如果没卖到现在可能有500倍了——“所以不要轻易卖掉好公司”

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💬 原文金句

“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（每天只有几千股成交），当时确实感觉很孤独，尤其是最后一天，居然一下买了接近50万股。孤独有时候确实价值连城。“（来源：段永平投资问答录(投资逻辑篇)，2012-05-21）

“因为丁磊就是个大孩子，那么多钱放他手里不放心，虽然股价证明我可能卖错了。“（来源：段永平投资问答录(投资逻辑篇)，2018-09-30）

“好公司是知道怎么花钱的那些公司。这点上网易不算好公司，账上躺太多现金。账上的现金不用是会贬值的！“（来源：段永平投资问答录(投资逻辑篇)，2014-06-06）

“对我个人而言，享受过程可能更重要，因为结果已经不那么重要了。“（来源：段永平投资问答录(投资逻辑篇)，2010-04-24）

“我们能在网易上赚到100多倍是因为我在做小霸王时就有了很多对游戏的理解，这种理解学校是不会教的，书上也没有，财报里也看不出来。“（来源：段永平投资问答录(投资逻辑篇)，2010-02-07）

“当时卖的时候大概赚了100多倍，如果没卖到现在可能有500倍了。所以不要轻易卖掉好公司哈。“（来源：段永平投资问答录(投资逻辑篇)，2019-03-20）

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🔗 相关笔记

相关概念 能力圈 · 买股票就是买公司 · 平常心 · 长期主义 · 差异化 相关人物 段永平 · 丁磊 相关主题 段永平的经典投资案例 · 如何看待市场波动 · 卖出的逻辑：段永平为什么很少卖