In the third quarter, renowned investor Duan Yongping, often referred to as the "Chinese Buffett," made significant adjustments to his multi-billion-dollar investment portfolio. Amid a general pullback in AI-related stocks, he reduced holdings in tech giants like NVIDIA while substantially increasing his stake in Berkshire Hathaway and initiating a new position in ASML Holding NV.
According to the latest 13F filing, the portfolio managed by Duan's H&H International Investment reached $14.7 billion by the end of Q3, marking a 28% increase from $11.5 billion at the end of Q2. Notably, Berkshire Hathaway saw a substantial 53% boost in holdings, now accounting for 17.78% of the portfolio.
Meanwhile, Duan significantly trimmed his exposure to tech stocks. NVIDIA holdings were slashed by 38%, while Alibaba saw a reduction of over 25%. Although Apple remained the largest holding, its position was slightly reduced.
These adjustments reflect Duan's cautious stance in the current market environment, particularly his reassessment of high-valuation tech stocks, shifting toward investments with greater certainty and value safety margins.
**Tech Stock Reductions, Heavy Bet on Berkshire** By the end of Q3, H&H International Investment held shares in 11 companies, with a total market value of approximately 104.4 billion yuan ($14.7 billion). Apple retained its top position with an $8.87 billion stake, representing 60.42% of the portfolio. Berkshire Hathaway followed with $2.61 billion, accounting for 17.78%.
Duan aggressively increased his Berkshire position by over 53% in Q3. On August 5, he publicly disclosed selling Berkshire put options, stating the stock was "no longer expensive" at the time. Berkshire’s stock had dipped to around $464 but has since rebounded to approximately $504.
Additionally, Duan initiated a position in ASML, the global leader in semiconductor lithography equipment, signaling his long-term confidence in the semiconductor sector. While cutting AI-related stocks like NVIDIA, he continues to target key players with core technologies and pricing power in the semiconductor supply chain. ASML’s stock has surged over 34% in the past six months.
**Tech Stock Reductions** Duan reduced holdings in multiple tech stocks, with NVIDIA experiencing the largest cut at 38%. Alibaba was trimmed by over 25%, while Apple, PDD Holdings, and Alphabet also saw reductions.
Regarding AI investments, Duan recently admitted he "still doesn’t fully understand AI" but believes in "participating to avoid missing out." He praised NVIDIA CEO Jensen Huang, noting his foresight from over a decade ago aligns perfectly with current developments.
**Duan and Buffett Both Trim Apple** Duan expressed cautious views on Apple’s valuation, calling it "not cheap." While acknowledging potential upside, he noted reduced certainty compared to the past. This aligns with his recent actions—after increasing Apple holdings by 894,000 shares in Q2, H&H reduced its stake in Q3. Duan has been gradually trimming Apple holdings over multiple quarters.
Interestingly, Warren Buffett’s Berkshire Hathaway also reduced its Apple position in Q3, selling approximately 41.79 million shares—a 14.9% decrease from Q2—worth about $10.6 billion. This marks Berkshire’s second consecutive quarter of Apple divestment, with Q3’s reduction being more aggressive.
Duan shares a deep connection with Buffett, having won a charity lunch with him in 2006 for $620,000—the first Chinese bidder to do so. His investment philosophy, emphasizing long-term value investing ("buying stocks means buying businesses"), is heavily influenced by Buffett. Their simultaneous moves—Duan increasing Berkshire while both trimming Apple—highlight their aligned strategies.
Over the past six months, Apple’s stock has risen over 28%.