Tencent
One of Duan Yongping’s biggest missed opportunities — “When Tencent was around 8 HKD, I even specifically visited Pony Ma, but kept procrastinating and never invested”
🏢 Company Profile
Tencent is one of the important companies in Duan Yongping’s portfolio, and also one of his admitted “missed opportunities.” When Tencent was around HK$8, he specifically visited Pony Ma, but ultimately didn’t invest. Later he bought into Tencent, considering its business model extremely strong — WeChat’s moat makes it impossible for users to leave. He regards Moutai, Apple, and Tencent as three companies with the best business model.
📅 Investment Timeline
| Time | Event | Duan Yongping’s Judgment |
|---|---|---|
| Around Tencent HK$8 | Specifically visited Pony Ma, felt positive about company | But “kept procrastinating and never invested” |
| Later | Bought Tencent | Considered an excellent business model |
| 2020 | Holding Tencent | ”My purchases of Apple, Moutai, including Tencent — all carry Old Buffett’s influence” |
💡 Why Duan Yongping Is Bullish on Tencent
- Extremely strong business model: Duan Yongping said “what remains in the end are often companies like Apple, Tencent” — in competition, the ultimate winners are often companies with extremely strong business models.
- Strong products are a prerequisite: Duan Yongping said “for example Moutai, Apple, Tencent — if their products weren’t this powerful, this good, could they have formed such powerful business models today?” — strong products are a prerequisite.
- Buffett’s influence: Duan Yongping said “after getting to know Old Buffett, my purchases of Apple, Moutai, including Tencent — all carry his influence, especially holding long-term — absolutely inseparable from him.”
- Extremely deep moat: WeChat has extremely high user stickiness and huge switching costs — this is Tencent’s most important moat.
💡 Tencent vs. Apple: Business Model Comparison
Duan Yongping directly compared Tencent and Apple’s business models:
“By the way, let me explain what a business model is: a business model is a profit-making model; ultimately the model that earns more should be considered better. Apple’s annual profit now exceeds the total profits earned by all Chinese internet companies (including Tencent) since their inception combined. What’s your logic for saying Tencent’s model is better?” (2013-03-04, Investment Logic)
This isn’t disparaging Tencent but illustrates the极致 embodiment of Apple’s business model in terms of profit scale. Tencent remains one of Duan Yongping’s companies with a “long slope, thick snow” profile.
❓ Selected Q&A
Q: How is Tencent’s business model?
**A}: What remains in the end are often companies like Apple, Tencent. (2019, Investment Logic)
Q: Why did you miss Tencent?
**A}: I didn’t invest in Tencent. When Tencent was around 8 yuan I even specifically visited Pony Ma, felt good about the company, but kept procrastinating and never invested. If Tencent were listed in the US, I probably would have invested. (Investment Logic)
Q: Whose business model is better: Tencent or Apple?
**A}: Apple’s annual profit now exceeds the total profits earned by all Chinese internet companies (including Tencent) since their inception combined. What’s your logic for saying Tencent’s model is better? (2013-03-04, Investment Logic)
Q: Is Tencent a “long slope, thick snow” company?
**A}: Tencent should count too, right? Any doubts? (2017-03-17, Business Logic)
Q: What made you finally buy Tencent?
**A}: It was by chance I learned about NetEase — somewhat lucky. Besides Tencent I haven’t looked at other game companies; always wanted to invest in Tencent but only bought some last year. (2019-03-16, Investment Logic)
⚠️ Lessons From Missing This Opportunity
Duan Yongping said “I didn’t invest in Tencent. When Tencent was around 8 yuan I even specifically visited Pony Ma, felt good about the company, but kept procrastinating and never invested. If Tencent were listed in the US, I probably would have invested.”
This lesson shows:
- If you understand something, you must act — can’t keep “procrastinating”
- Opportunities within your circle of competence shouldn’t be missed due to market differences (HK stocks)
- This is the reverse of selling logic — buying also requires decisiveness
💬 Original Excerpts
“After getting to know Old Buffett, my purchases of Apple, Moutai, including Tencent — all carry his influence, especially holding long-term — absolutely inseparable from him haha.” — Duan Yongping (2020-10-15)
“I didn’t invest in Tencent. When Tencent was around 8 yuan I even specifically visited Pony Ma, felt good about the company, but kept procrastinating and never invested. If Tencent were listed in the US, I probably would have invested.” — Duan Yongping (Investment Logic)
“What remains in the end are often companies like Apple, Tencent.” — Duan Yongping (2019, on companies that ultimately win out)
“For example Moutai, Apple, Tencent — if their products weren’t this powerful, this good, could they have formed such powerful business models today? Strong products are a prerequisite.” — Duan Yongping (2020-10-31)
“Tencent should count too, right? Any doubts?” (2017-03-17, discussing long slopes and thick snow)
📚 Investment Insights
- Act when you understand: Duan Yongping missed Tencent because he kept “procrastinating” — this is the reverse of selling logic, also an important lesson for buying logic
- Don’t miss opportunities due to unfamiliar markets: Duan Yongping said “If Tencent were listed in the US, I probably would have invested” — opportunities within your circle of competence shouldn’t be missed because of market differences
🔗 Related Notes
Related Concepts Business Model · Moat · Buying Logic · Circle of Competence Related People Duan Yongping · Buffett Related Companies Apple · Moutai · NetEase Related Topics Duan Yongping’s Mistakes and Reflections