Doing the Right Things and Doing Things Right

Why Conviction, Humility, and Opportunity Cost Matter More Than Ever

There’s a principle from Duan Yongping that I’ve come to appreciate more and more:

“投资人应该保持平常心，专注于做正确的事，并且把事情做对。”

It sounds simple, almost obvious, but it’s surprisingly difficult to put into practice. Still, it captures the core of Duan Yongping’s investment philosophy—and it deeply resonates with me. In this post, I want to share why this mindset is so important, especially in a market that constantly tests your conviction, patience, and clarity. I’ll also reflect on how I’ve recently applied it through adjustments to my own portfolio.

What It Means to Do the Right Thing

In investing, doing the right thing means sticking to timeless principles: think like a business owner, stay within your circle of competence, avoid leverage, and be patient enough to let compounding work its magic. It also means recognizing that investing isn’t a zero-sum game like speculation. Instead, it's about identifying businesses with durable moats and future cash flow, investing with a margin of safety, and holding long enough for value to emerge. But even identifying what the right thing is takes real effort. You need mental clarity, independent thinking, and the ability to see things as they truly are—not how you wish them to be.

Of course, even when we try to do the right thing, mistakes happen. That’s part of the journey, and also the hardest part of staying on track. Even Warren Buffett isn't exempt. What matters is that once a mistake is recognized, it should be corrected immediately, no matter the cost, because that cost is likely the smallest you’ll pay. The mistake itself isn’t the real danger; the real danger is knowing you're wrong and still refusing to change. I’ve also learned this with my investment in the glove industry. I decided to exit my position of Hartalega around 1.90, with a small profit. Why? I used to think I understood the capital cycle of the glove industry, but I was wrong.