The Warren Buffet of China
A legendary investor & one of the industry's best kept secret!
Li Lu, is the founder of Himalaya Capital and one of the chief practitioner of value investing after Charlie Munger & Warren Buffet.
A thread
#LegendsByFinalysis
#investing
A legendary investor & one of the industry's best kept secret!
Li Lu, is the founder of Himalaya Capital and one of the chief practitioner of value investing after Charlie Munger & Warren Buffet.
A thread
#LegendsByFinalysis
#investing
The early life of Li Lu
~ 1966: Born in China
Family imprisoned in the Cultural revolution
Spent childhood in half a dozen foster families
~ 1976:
Survived earthquake as a 10 yr old
Lost adopted family
Blacked out on the street seeing dead bodies
Re-united with blood family
~ 1966: Born in China
Family imprisoned in the Cultural revolution
Spent childhood in half a dozen foster families
~ 1976:
Survived earthquake as a 10 yr old
Lost adopted family
Blacked out on the street seeing dead bodies
Re-united with blood family
The early life of Li Lu
~ 1985:
Enrolled in Nanjiang University
Majored in Physics, later transferred to Economics
~ 1989:
Led Tiananmen Student Protest
Was deputy commander of the reform movement
One of the government's most-wanted
Rescued to USA through operation Yellow-Bird
~ 1985:
Enrolled in Nanjiang University
Majored in Physics, later transferred to Economics
~ 1989:
Led Tiananmen Student Protest
Was deputy commander of the reform movement
One of the government's most-wanted
Rescued to USA through operation Yellow-Bird
Li Lu's new life in USA
~ Learnt English
~ Studied at Columbia University
~ Got scholarship but had to take expensive student loan too!
By 1996 graduated simultaneously in:
- BA in Economics
- JD from Law School
- MBA from Business School
Wrote a memoir: "Moving the Mountain"
~ Learnt English
~ Studied at Columbia University
~ Got scholarship but had to take expensive student loan too!
By 1996 graduated simultaneously in:
- BA in Economics
- JD from Law School
- MBA from Business School
Wrote a memoir: "Moving the Mountain"
A mistake that turned out as a blessing!
Being under debt, Li Lu wondered about earning money
He once attended a lecture on how to earn money, mistaking the name Buffett for a buffet -"Free Lunch"
The lecture by Warren Buffett helped overcome his skepticism in stock investing!
Being under debt, Li Lu wondered about earning money
He once attended a lecture on how to earn money, mistaking the name Buffett for a buffet -"Free Lunch"
The lecture by Warren Buffett helped overcome his skepticism in stock investing!
Li Lu follows Buffett
~ Extensively studied Buffett's works & searched for companies with margin of safety.
~ Used primary school maths to interpret balance sheets
~ Invested book royalties & fees earned by giving lectures.
~ By graduation had earned enough to retire!
~ Extensively studied Buffett's works & searched for companies with margin of safety.
~ Used primary school maths to interpret balance sheets
~ Invested book royalties & fees earned by giving lectures.
~ By graduation had earned enough to retire!
Li Lu starts his own fund
~ Worked for some time in law firm
~ Followed up with working in investment banking firms
~ But, disliked the mundane routines of pleasing the client
~ Launched Himalaya Capital in 1997
The investment fund has earned phenomenal returns over the years!
~ Worked for some time in law firm
~ Followed up with working in investment banking firms
~ But, disliked the mundane routines of pleasing the client
~ Launched Himalaya Capital in 1997
The investment fund has earned phenomenal returns over the years!
Early Failure of Himalaya Capital
~ Li Lu's fund was hammered in the Asian Debt crisis of 1998
~ Lost 19% of portfolio value
~ However, by 1999 it regained all losses
~ Thereafter, many high profile investors gave their funds for investing in Himalaya Capital
~ Li Lu's fund was hammered in the Asian Debt crisis of 1998
~ Lost 19% of portfolio value
~ However, by 1999 it regained all losses
~ Thereafter, many high profile investors gave their funds for investing in Himalaya Capital
Li Lu meets Charlie Munger
~ A conversation of 5-6 hrs, made Munger to invest in Li Lu's fund
~ Munger soon, became the largest investor in Li Lu's fund
~ Currently, Li Lu is the manager of Munger's family assets
~ They are not only good investors but are also good friends.
~ A conversation of 5-6 hrs, made Munger to invest in Li Lu's fund
~ Munger soon, became the largest investor in Li Lu's fund
~ Currently, Li Lu is the manager of Munger's family assets
~ They are not only good investors but are also good friends.
Li Lu's popular BYD bet
~ Invested in BYD, a battery company in it's infancy
~ Li Lu convinced Munger & Buffett to invest in BYD
~ A engineer with an initial loan, grew BYD to $8 billion revenue & 170,000 employees impressed them
~ Berkshire Hathway then invested in BYD.
~ Invested in BYD, a battery company in it's infancy
~ Li Lu convinced Munger & Buffett to invest in BYD
~ A engineer with an initial loan, grew BYD to $8 billion revenue & 170,000 employees impressed them
~ Berkshire Hathway then invested in BYD.
Himalaya Capital
~ Manages only one fund, which is being run by Li Lu since inception
~ Has a concentrated portfolio of 4-5 companies
~ Owns quality companies with economic moat for long term
~ Primary focus on listed companies in Asia, with emphasis on China
~ Manages only one fund, which is being run by Li Lu since inception
~ Has a concentrated portfolio of 4-5 companies
~ Owns quality companies with economic moat for long term
~ Primary focus on listed companies in Asia, with emphasis on China
Li Lu's investment philosophy
Value Investing
~ Invest within circle of competence
~ Have Margin of safety
~ Ownership mindset
~ Invest in companies with consistent high return of capital than industry avg
~ Be extremely patient yet extremely decisive when opportunity comes!
Value Investing
~ Invest within circle of competence
~ Have Margin of safety
~ Ownership mindset
~ Invest in companies with consistent high return of capital than industry avg
~ Be extremely patient yet extremely decisive when opportunity comes!
If you have found this tweet valuable, do re-tweet the first tweet in this thread (👇👇) for the benefit of all!
Tagging for better reach:
@SahilBloom
https://twitter.com/Finalysis20/status/1409019322333220864?s=20
Tagging for better reach:
@SahilBloom
• • •
Missing some Tweet in this thread? You can try to
force a refresh
