Warren Buffett, the world-renowned "stock god", a famous investor, and also the chairman and CEO of Berkshire Hathaway, is famous for his unique investment vision and value investment philosophy. Buffett has achieved excellent investment returns with his strategy of long-term holding of high-quality company stocks, becoming one of the most successful investors in the world.

China also has a "Buffett". He is the chairman of Subor and BBK, and the founder and investor of OPPO and vivo. In 2001, he bought NetEase stocks at a low price in a forward-looking manner. Subsequently, NetEase's stock price rose sharply, so he received huge returns and his reputation soared. He is Duan Yongping, a legend in the Chinese stock market and an outstanding entrepreneur in the Chinese business community.

Mysterious investment institution H&H International Investment

According to information publicly disclosed by the U.S. Securities and Exchange Commission (SEC), as of June 30, 2024, an institution called H&H International Investment, LLC (hereinafter referred to as "H&H Investment") has a U.S. stock holding of US$16.632 billion. According to the current exchange rate, the asset size of this institution is approximately equivalent to RMB 120 billion.

Despite the huge asset size of H&H Investment, the filing documents show that the company has only two employees. Among them, Eric Hu serves as the chief compliance officer and is also the owner of the company. Judging from his name, he may be a Chinese. In addition, according to the business information of other platforms, in addition to Eric Hu, there is another owner named YONGPING DUAN. According to the spelling of the name, YONGPING DUAN is similar to the name of the well-known Chinese investor Duan Yongping. However, Duan Yongping himself has never publicly confirmed or denied the relationship with H&H Investment or YONGPING DUAN, so there is no conclusive evidence that YONGPING DUAN is Duan Yongping, or that there is a direct connection between the two.

H&H Investment first disclosed its U.S. stock holdings to the SEC at the end of the fourth quarter of 2018, when its holdings were $836 million. In the next two years, by the end of the fourth quarter of 2020, its holdings increased significantly to $7.017 billion. By the end of the fourth quarter of 2022, H&H Investment's holdings reached a new milestone, breaking the $10 billion mark, and this growth momentum is still continuing. It is worth noting that although H&H Investment has only two employees, its asset growth rate and investment performance are extremely amazing, which has undoubtedly attracted widespread attention and high expectations from the outside world.

Such a development trajectory has aroused investors' curiosity about the operating model and investment strategy of this investment institution. The success of H&H Investment may also be closely related to the famous investor Duan Yongping.

Betting on Apple brings huge profits?

Analyzing the historical holdings of H&H Investment, we can find that the significant expansion of its asset size is mainly due to two key factors: one is the injection of external funds, and the other is the profitability of the holdings.

First, from 2018 to 2020, H&H's assets grew eightfold. A ninefold increase in two years is indeed a pretty tall order for any institution. Therefore, given the significant infusion of funds during this period, this growth can be considered reasonable to a certain extent.

However, when we look at it from the perspective of the first half of 2024, the appreciation of the institution's managed assets should be mainly attributed to the profitability of its portfolio. Take Apple, the fund's largest holding, as an example. Its share price has increased by 10% in the first half of 2024. As a stock with a holding ratio of more than 80%, Apple's contribution to the overall asset appreciation of the fund is significant.

Although Duan Yongping is known as the 'Chinese Buffett', he and Buffett himself have different investment decisions on Apple this year. Buffett significantly reduced his holdings of Apple shares in the second quarter of this year, with a cumulative reduction of more than 500 million shares, with a market value of approximately US$84 billion. At the same time, H&H, managed by Duan Yongping, only reduced its holdings of Apple by about 1% in the same quarter, showing that his holdings of Apple during this period were more stable.

Where will the next investment direction be?

On August 15, Duan Yongping revealed his latest investment operation on social media, saying that he recently bought Tencent shares. He mentioned that due to the lack of available put options, he made several changes during the order process and could not even buy 10,000 shares at one time. He said: "I just bought some Tencent. There is no put option available, which is really annoying. I changed the order several times, and each time I placed an order, I could not even buy 10,000 shares. ”

Duan Yongping is known for long-term holdings, and although he has significantly increased his holdings in Alibaba, his admiration for Tencent on the forum is more obvious. He has publicly stated his investment in Tencent many times, and emphasized that although he did buy Tencent, the actual holding amount is relatively low.

In January this year, Duan Yongping predicted that companies like Apple, Moutai and Tencent should still exist in the next decade. A few days ago, he also expressed regret that there are no options on Tencent ADR in the US stock market, which limits his options operations on this company that he continues to be optimistic about.

Looking back, in August 2022, when Tencent's stock price continued to fall, Duan Yongping bought at least 100,000 shares of Tencent ADR at a price of about US$37. In December 2023, he again said that he bought 200,000 shares of Tencent ADR at a price of about US$41, and hinted that he planned to continue to increase his holdings.

Follow us

Find us on Twitter, Instagram, YouTube, and TikTok for frequent updates on all things investing.

Have a financial topic you would like to discuss? Head over to the uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app！

Important Notice and Disclaimer:

We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

This document should not be construed in any jurisdiction as constituting an offer, solicitation, recommendation, inducement, endorsement, opinion, or guarantee to purchase, sell, or trade any securities, financial products, or instruments or to engage in any investment or any transaction of any kind, nor is there any intention to solicit or invite the purchase or sale of any securities.

The value of these securities and the income from them may fall or rise. Your investment is subject to investment risk, including loss of income and capital invested. Past performance figures as well as any projection or forecast used in this article is not indicative of its future performance.

This advertisement has not been reviewed by the Monetary Authority of Singapore