Tesla
Made money, but later discovered the logic was wrong — this is Duan Yongping’s own typical example of “made money but bought wrong”
🏢 Company Profile
Tesla is an American electric vehicle company known for its disruptive EV driving experience. Duan Yongping once held Tesla and made considerable money, but ultimately sold out entirely because he “couldn’t understand it,” listing it as a typical case of “made money but facts or logic were wrong.”
📅 Investment Timeline
| Time | Event | Duan Yongping’s Words/Judgment |
|---|---|---|
| Early period | Bought Tesla | ”Made quite a bit of money on Tesla” |
| Before 2019 | Sold all positions | ”Eventually sold everything because I couldn’t understand it” (2019-03-13) |
| 2018 | Reviewed this case | ”My Tesla is a typical example” — made money, but later discovered facts or logic were wrong (2018-10) |
💡 Why Duan Yongping Ultimately Gave Up on Tesla
- Not understanding is the core reason: Duan Yongping explicitly said he doesn’t understand the auto industry. Although he made considerable money on Tesla, he eventually sold everything because he couldn’t understand it — a direct embodiment of circle of competence principles. (Source: Duan Yongping Investment Q&A (Investment Logic), 2019-03-13)
- Making money doesn’t mean the buy decision was right: This case was used by Duan Yongping to illustrate “made money but later discovered facts or logic were wrong” — good outcomes don’t equal correct decisions; this is important cognition for mistakes and correction. (Source: Business Logic, 2018-10)
- Good EV experience doesn’t equal understanding the company: Duan Yongping acknowledged that the EV driving experience “is still quite shocking compared to traditional cars,” but this doesn’t mean he can understand Tesla’s long-term value as a company.
💬 Original Excerpts
“I actually don’t understand your automotive industry examples either. Although I made quite a bit of money on Tesla, I eventually sold everything because I couldn’t understand it.” (Source: Duan Yongping Investment Q&A (Investment Logic), 2019-03-13)
“My Tesla is a typical example.” (Answering “Have you ever made trades where you made money but later discovered facts or logic were wrong?“) (Source: Business Logic, 2018-10)
📚 Investment Insights
- Good outcome doesn’t equal correct decision: Made money on Tesla, yet Duan Yongping himself admitted his logic was wrong. This reminds us: we can’t use outcomes to validate decisions’ correctness — must use buying stocks is buying companies logic to test whether you truly understand this company.
- Give up if you don’t understand, even if you’ve already made money: The boundary of circle of competence isn’t “places where I’ve made money,” but “places where I truly understand.”
- For companies like Tesla, if you didn’t buy before, even if it falls further you still shouldn’t buy: This was Duan Yongping’s direct judgment on Tesla — it’s not a target where “if it drops you can buy,” because most people simply can’t understand it. (Source: Duan Yongping Investment Q&A (Investment Logic), 2013-07-04)
🔗 Related Notes
Concepts Embodied: Circle of Competence · Mistakes and Correction · Buying Stocks Is Buying Companies
Related People Duan Yongping
Related Topics Duan Yongping’s Mistakes and Reflections