2.9 billion, Sir Duan has made a bottom-fishing move.
Sir Duan has made a bottom-fishing move.
On the morning of April 8, Duan Yongping posted 5 delivery slips on Xueqiu, selling put options for Nvidia, Apple, TSMC, Google, and Tencent. Before making the move, Duan Yongping posted, "The mountain is still that mountain, and the beam is still that beam"… "The understanding king will at least have to stir things up for a while; selling some puts and stirring things up together might be a fun game."
Calculating (after excluding suspected duplicate trades in the delivery slips), this time Duan Yongping's "bottom-fishing" involved approximately $394.55 million (about 2.9 billion RMB), with about $90 million in Apple, about $150 million in Nvidia, about $80 million in Google, and about $80 million in TSMC. The contract durations in the delivery slips range from just a few days to expiration in 2026, with strike prices varying widely, but given Duan Yongping's character and his previous statement of being "in cash," he must have prepared his positions.
Tencent was more of an experimental operation; Sir Duan sold Tencent puts at HKD 440 per share with different expiration dates, but the experience was average, so he said, "The premiums for long-term puts are not good, and the short-term ones are generally not good; it's hard to collect premiums."
Additionally, Duan Yongping directly "purchased" 10,000 shares of Nvidia at $94 per share, a "small amount" of less than $1 million. Buffett said, "When others are fearful, I am greedy." Whether Duan Yongping successfully copied the homework this time remains to be seen, as the market is also waiting for Buffett's speech in May, and the old man still has a large amount of cash untouched.
Last month, when U.S. stocks began to plummet, Duan Yongping boldly declared that he had "already been in cash and enjoyed the pleasure of being in cash," stating, "The core of investment management is managing risk, not pursuing returns." He escaped the peak in cash and then prepared to bottom-fish with 2.9 billion.
2.9 billion is a fun game; it’s no wonder it’s Sir Duan.
In cash, bottom-fishing
Let’s take a look at the four companies he bottom-fished this time. Apple and Google are favorites of Duan Yongping. As of the end of Q4 2024, Duan held Apple shares worth $10.233 billion, accounting for 70.50% of his portfolio. He also holds 3.77 million shares of Google, with a market value of $717 million.
At the end of last month, Duan publicly stated, "I will consider increasing my position in Google. Google has a strong foundation and should not be underestimated." Even though Trump's tariffs pose a threat to the cornerstone of the business model, Sir Duan still remains optimistic about Apple.
Nvidia and TSMC, the water sellers of the AI era, have become Sir Duan's new favorites.
According to public information, Duan first bought Nvidia on March 19 this year, announcing an order to buy 100,000 shares at a limit price of $92.52 just one hour before CEO Jensen Huang's speech, while simultaneously selling call options for this batch of stocks at a strike price of $120, with a contract valid until March 20, 2026.
A year ago, he was still an investor who "didn't understand" Nvidia. He wrote, "Understanding a company is indeed very difficult. I didn't understand it before, and I still don't understand it now. I can't figure out whether this company will be better or worse in ten years."
However, starting this year, Duan Yongping has mentioned Nvidia on Xueqiu more than a dozen times, clearly indicating a change in attitude. In early March, when he still felt he didn't understand Nvidia, he chose to sell 1,000 Nvidia puts for a total price of $370,000. Even after buying Nvidia stock, he admitted that he couldn't say he completely understood it, but he did feel that NVDA's moat was quite impressive. "Looking at it, this is definitely a good company, and buying some is likely to make money."
Additionally, he mentioned that years ago he had dinner with Jensen Huang, "I had a very positive impression of him, but unfortunately, we didn't chat much because my English wasn't good. If I had been able to see this back then, my attention might have increased a lot; it's not too late to start paying serious attention now."
Now, with the U.S. stock market plummeting, Sir Duan is "more interested the more it drops," stating, "Think different does not mean you have to be different from others. You can be the same on NVDA." In terms of acceptance of technology, Sir Duan is clearly more aggressive than Buffett.
In contrast, his overall operations have left investors both amused and exasperated. At the end of February, he decisively reduced his position by 70%, holding a large amount of cash. A few days later, due to FOMO, he bought back Nvidia and a series of U.S. stocks, even adding leverage. Unfortunately, after that, Nvidia's stock price fell over 25% from its peak, leading to a significant decline in the net value of the fund managed by him.
Besides Nvidia, Duan has recently also focused on TSMC. Combining Sir Duan's recent statements, "TSMC's business model and corporate culture are very strong. TSMC and Microsoft are both powerful B2B companies; I have been slow to realize this." Perhaps Sir Duan is not immune to FOMO either.
Bottom-fishing is just a routine operation
In fact, bottom-fishing is a routine operation for Sir Duan.
Everyone knows about Sir Duan's bottom-fishing operation with NetEase, and in 2022, he also bottom-fished Tencent's U.S. ADR five times, in February, March, April, August, and October, continuously bottom-fishing and replenishing his position, with the cheapest price reaching $32. At that time, Duan Yongping believed that, in the long run, buying Tencent stock might be safer than keeping money in the bank, as it allows one to enjoy the dividends of corporate growth.
During the 2008 financial crisis, Duan Yongping also executed a perfect bottom-fishing strategy. He recalled that in September 2008, as the impact of the financial crisis grew following Lehman Brothers' collapse, the entire market was in a state of panic.
"By November, the panic in the entire market intensified, and negative sentiment was almost at its peak. I thought to myself, this is probably what Buffett meant by people's 'fear' coming, and it was time for me to be 'greedy.' At first, I didn't have a particularly clear target; I just felt that there were bargains everywhere in the market, but I didn't know which ones were safe. It seemed like each one had significant problems, and every company could be on the verge of collapse. What I thought most about was how to mobilize all the resources at hand to seize this once-in-a-lifetime opportunity."
In February 2009, GE's stock fell below $10. At that time, many companies related to subprime mortgages, such as Lehman, AIG, and Citigroup, had already gone bankrupt or were on the verge of bankruptcy, and negative news about GE was increasing. Many on Wall Street were saying that GE would be the next Lehman.
However, Sir Duan believed that the financial crisis would not destroy GE's strong corporate culture, and past strategic errors could be corrected over time. Therefore, when GE's stock price fell from around $9 to $6, he began to buy in large quantities. The returns were quite substantial; he sold at over $20, yielding about 200%.
Magical U.S. stocks
Last night, the U.S. stock market experienced quite a magical moment, with the Nasdaq plummeting nearly 5% shortly after opening, only to be followed by news that "tariff policies will be paused for 90 days," causing the index to turn from a 5% drop to a rise of over 4% within half an hour, with the S&P index rising over 3%.
However, about seven minutes later, the three major U.S. indices suddenly reversed direction, bouncing around like a speculative stock. Friends following the U.S. stock market jokingly remarked that "little essays" have also become popular in stock trading.
It is worth mentioning that the S&P 500 index has only seen a cumulative decline of over 10% in two trading days three times before: during the 1987 stock market crash, during the 2008 global financial crisis, and in early 2020 at the onset of the pandemic. The darkest moments of the stock market have also led to a loss of over $500 billion in wealth for 500 of the world's richest individuals.
Meanwhile, the domestic capital market has orderly released a series of positive signals.
According to statistics from China Securities Journal, on the evening of April 7, several large central state-owned enterprises, private listed companies, and shareholders announced share repurchase-related announcements. Central Huijin, China Chengtong, and China Guoxin have made significant purchases of A-shares.
Central Huijin stated that it firmly believes in the development prospects of China's capital market and fully recognizes the current value of A-share allocation. It has again increased its holdings in exchange-traded funds (ETFs) and will continue to increase its holdings in the future to resolutely maintain the stable operation of the capital market. China Chengtong's subsidiaries, Chengtong Financial Holdings and Chengtong Investment, have increased their holdings in ETFs and central enterprise stocks, continuously making large purchases of central state-owned enterprise stocks and technology innovation stocks, acting as long-term investors in listed companies. China Guoxin Holdings announced that its subsidiary, Guoxin Investment Co., Ltd., has increased its holdings in central enterprise stocks, technology innovation stocks, and ETFs, actively supporting technological innovation in key areas and contributing to maintaining market stability.
On the morning of April 8, the People's Bank of China and Central Huijin made significant statements. Central Huijin clarified that it is the "national team" in the capital market, playing a role similar to that of a "stabilization fund." The central bank also stated that it would provide sufficient relending support to Central Huijin when necessary. Meanwhile, the National Financial Regulatory Administration also announced that it would increase the proportion of insurance funds invested in the stock market.
Perhaps Sir Duan could also consider another "old acquaintance," Moutai?
How to understand Duan Yongping's stock market operations this week | MacTalk - Thoughts of Chi Jianqiang A few days ago, I saw Duan say on Xueqiu:
A few days ago, I saw Duan say on Xueqiu:
Sold some Apple and other puts. The understanding king is mighty; it feels like he will at least stir things up for a while. Selling some puts and stirring things up together might be a fun game. As always, don't use margin. If the price of the puts coming in looks cheap in ten years, then this investment is worth making, suitable for both short and long term.
What does this statement from Duan Yongping mean? I'm not very clear, but we can ask Gimini 2.5 Pro, and the response is as follows:
Gimini 2.5 Pro: This statement is Duan Yongping sharing his investment strategy and philosophy during periods of market volatility, mainly revolving around selling put options. We can break it down:
1. "Sold some Apple and other puts":
Core operation: He sold (Sell) some put options for Apple (AAPL) and other companies he considers good.
2. What selling put options means: The investor selling put options (in this case, Duan Yongping) receives a premium. In exchange, he takes on an obligation: if the buyer of the option chooses to exercise it on or before the expiration date, the seller (Duan Yongping) must buy the corresponding number of shares from the buyer at the agreed strike price.
3. Seller's expectation: Typically, those who sell put options expect the stock price to be at or above the strike price at expiration, so the option will not be exercised (or will have very low value), allowing them to earn the entire premium.
4. "The understanding king is mighty; it feels like he will at least stir things up for a while":
Background/motivation: "Understanding king" usually refers to former U.S. President Trump. This statement implies that he believes (at that time) that due to political or other macro factors (possibly related to Trump), the market will experience a period of volatility or uncertainty ("stirring things up").
Strategy connection: During periods of increased market volatility, the implied volatility of options typically rises, making the premiums higher. Therefore, selling options when expecting the market to "stir" can yield richer premiums.
5. "Selling some puts and stirring things up together might be a fun game":
Strategy description: This suggests that he may not just sell once, but during market volatility, he may repeatedly sell put options based on the situation ("stirring things up together") to continuously earn premiums.
Mindset: "Fun game" reflects his relatively relaxed attitude towards this strategy, but it also implies that it requires skill and an understanding of risk.
6. "As always, don't use margin":
Risk warning: This is a point he consistently emphasizes. Margin refers to borrowing money from a broker to invest. Selling put options (especially naked puts) carries significant risks; if the stock price drops sharply, the seller must use a large amount of capital to buy the stock. If margin is used, a sharp market downturn leading to losses may trigger a margin call, or even forced liquidation, resulting in irreparable losses.
Principle: He emphasizes using only his own and idle funds for such operations, ensuring that even in the worst-case scenario (having to buy the stock at the strike price), he is fully capable of bearing the cost without jeopardizing financial safety.
7. "If the price of the puts coming in looks cheap in ten years, then this investment is worth making":
Core philosophy: This reveals his deeper logic behind selling puts, consistent with his value investment philosophy. The companies for which he sells puts (like Apple) are ones he is willing to hold long-term. The strike price he sets is one he believes is reasonable, even cheap, for buying the stock if forced to take it ("the price of the puts coming in... is cheap").
Value judgment: He is not merely selling puts to earn premiums; he views selling puts as a potential way to buy good company stocks at an ideal price. If the stock price does not fall below the strike price, he earns the premium; if it does, he is forced to take the stock, which is equivalent to buying it at a "cheap price" he previously approved. This price must withstand the test of time ("looking back in ten years").
Strategy flexibility: This strategy has both short-term gains (earning premiums) and long-term goals (buying good company stocks at good prices). Therefore, from both short-term operations and long-term investment perspectives, he believes this is appropriate.
In summary:
Duan Yongping's statement describes a strategy that combines options trading and value investing:
During expected market volatility, he earns premiums by selling put options.
The target companies are ones he believes in long-term and is willing to hold.
The strike price he sets is one he considers worthwhile even if he has to take the stock.
Strictly prohibits using leverage (Margin), covering potential buying obligations with his own cash to control risk.
Under this strategy, if the stock price does not fall, he earns premiums; if it does and he is exercised, he buys the stocks of the companies he favors at a preset ideal price. This makes the strategy reasonable for both short-term (collecting rent) and long-term (building positions).
This is a relatively conservative options strategy based on fundamental value judgment, with the core being a deep understanding of company value and strict risk control.
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This response is far better than other AIs.
You see, from such a short statement by the big shot, we can learn so much knowledge through AI. It must be said that AI is a must-have option, whether you want to learn or work. After all, the old Duan isn't going to explain these basic terms and logic to you.
Sharing an efficient reading method by Li Xiaolai#
Since the first day of 2023, I have almost taken out 1 hour every day to read, accumulating about 100 books. As my reading volume has increased, I increasingly agree with the viewpoint of Silicon Valley investor Dr. Wu Jun: reading should be layered to balance breadth and depth, thereby acquiring knowledge more effectively.
It sounds simple, but how exactly should it be done?
Recently, I saw Teacher Li Xiaolai share his reading method on Weibo, which inspired me greatly. Combining my personal experience, I have broken down and optimized this method, transforming it into a more down-to-earth reading process that is more suitable for ordinary people. If it inspires you, feel free to follow.
01
Li Xiaolai's efficient reading method
Teacher Li Xiaolai's reading method combines efficient filtering and deep reading, with the specific process as follows:
Ask AI (ChatGPT) to recommend 5 to 10 books in a certain field to quickly identify quality books.
Find these books, buy them all, download and convert them into text format for easier processing later.
Use AI tools like NotebookLM (which cannot be used directly in China) to quickly browse these 5 to 10 books in one day, filtering out the most worthwhile content for in-depth reading.
Spend 3 to 5 days deeply reading the most worthwhile book.
Then spend 1 day deeply reading the most valuable parts of the remaining books.
When I first saw this efficient reading method, I was filled with excitement and eager to try it. However, after calm reflection, I realized that I couldn't blindly copy it, as it might backfire.
Teacher Li Xiaolai's deep reading requires a certain reading foundation and patience, but everyone's learning habits and reading abilities are different. Directly imitating this advanced reading method may lead to frustration due to an inability to persist, causing a loss of interest in reading.
Therefore, the method needs to be improved.
02
A more suitable efficient reading method for ordinary people
I really like a saying: "Learn its form, comprehend its spirit, learn and then think." This means that we should not only learn the external form but also grasp its internal essence, and reflect and summarize in practice. Only in this way can we continue to progress.
Returning to Teacher Li Xiaolai's efficient reading method, we can capture three core points:
First, cast a wide net to avoid missing quality books in a certain field.
Then quickly filter to ensure that time is spent on quality content.
Finally, read deeply and dig into the 20% of the most valuable content that takes up 80% of the time.
Based on these points and my personal experience, I believe a more suitable efficient reading method for ordinary people is as follows:
- First determine the theme, rather than aimlessly searching for books
In Teacher Li Xiaolai's process, he first uses AI (like ChatGPT) to obtain 5 to 10 quality books under a certain theme. For ordinary people, the most important thing is to first clarify what problem you want to solve or what knowledge you urgently need to supplement. You can:
First ask yourself: What skills do I want to improve recently? What challenges am I facing?
Then let AI (like DeepSeek, Kimi) or experienced friends recommend books; 5 to 10 books are enough.
Using questions to guide direction will be more targeted, thus avoiding wasting time and energy.
For example, when I started cultivating my reading habit at the beginning of 2023, I had many confusions that needed answers, such as: How to read a book effectively? Why do some people gain so much from reading the same book while I do not? What is the difference? Can time really be managed? Everyone has 24 hours in a day; why are some people so efficient while I am not? What is the problem, and how can I solve it?
There were many similar confusions, and my approach was to first determine the theme, such as reading methods, time management, habit formation, system thinking, etc. At that time, ChatGPT had just become popular, but I didn't ask ChatGPT to recommend books; instead, I manually searched for books on platforms like Douban Reading, WeChat Reading, and Zhihu, creating a book list.
▲ Book list on "Reading Methods"
▲ Book list on "Habit Formation"
▲ Book list on "Time Management"
Follow the public account and reply "high-scoring book list" to receive the book list I compiled.
Of course, compared to two years ago, AI has evolved tremendously. With the increasing frequency of using AI, I now also directly ask AI for recommendations.
- Use accessible tools to quickly obtain information
Li Xiaolai converts e-books into text format and uses AI tools like NotebookLM for quick scanning. This may be a bit challenging for ordinary people. At this point, you can:
Download reading apps on your phone, find the book, and quickly preview it using the "table of contents + keyword search" function to understand the framework and key chapters of the book.
If you bought a physical book, you can take photos with your phone + use OCR software (like CamScanner) to convert important chapter content into text, then analyze it with AI tools like DeepSeek or Kimi.
- First skim, then read deeply
Li Xiaolai's idea is to quickly go through 5 to 10 books first and then select the most worthwhile one for deep reading. Ordinary people can directly borrow this approach:
Spend 3 days to skim through the table of contents, prefaces, conclusions, or important chapters of all the books, tagging each book with a label of "worth reading deeply" or not.
Select the most worthwhile 1 to 2 books for deep reading: highlight key points, take notes, and think about how to apply them to your life and work.
The other books can serve as a "resource library," only picking and reading the chapters most relevant to your questions.
- When reading deeply, don’t rush to finish but focus on understanding
Deep reading is not about racing to the last page but thinking as you read:
What are the most important points of this book?
Are there methods that can be directly applied to work, study, or life?
When you come across a concept, pause to think if you can explain it to someone else or write it in your own words?
- Combine notes and applications
For example:
Create a note document on your phone or computer (using Evernote, Notes, Feishu, WPS, etc.), and write a 3 to 5 line summary after finishing each chapter.
When you come across good ideas, think about "how can I use this?"
As your notes accumulate, you will have your own exclusive "knowledge base," allowing you to quickly find corresponding knowledge points and ideas when encountering similar problems next time.
03
Two small suggestions
- Learn the approach, then take action
Li Xiaolai was once a famous English teacher at New Oriental and has programming skills, easily using foreign AI tools. Ordinary people might say, "I don't have these skills; I can't be as efficient as he is."
In fact, tools are just auxiliary means; the core is still the thought of "first broadly collecting information, then quickly filtering, and finally deeply researching and practicing." Even if we only have physical books and a mobile reading app, we can use similar steps for filtering and deep reading.
- Set time limits for reading
If you don't set time limits, it's easy to accumulate books and materials without ever reading or finishing them. Why not try:
Spend 3 days doing a quick browse.
Spend 5 to 7 days deeply reading the most valuable book.
Then spend 3 days browsing the remaining few books, focusing on key chapters.
We may not be able to achieve the efficiency of Teacher Li Xiaolai, but we can borrow this method of "time chunking" to rhythmically arrange time according to personal circumstances, allowing ourselves to maintain focus during a certain period.
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In conclusion:
As Dr. Wu Jun said, reading should be layered to balance breadth and depth, enabling more effective knowledge acquisition. If you gain something from reading this article, why not pick one small technique that interests you and take action?
That's all, let's encourage each other.