TIP636: BILLIONAIRE INVESTING LEGEND LI LU

W/ CLAY FINCK

08 June 2024

On today’s episode, Clay dives into the investment approach of billionaire value investor Li Lu.

Li Lu is the Founder and Chairman of Himalaya Capital, a value investing firm where he has been managing its principal fund since 1997. Before his passing in 2023, Charlie Munger was an investor in the fund.

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IN THIS EPISODE, YOU’LL LEARN:

  • The back story of Li Lu’s early life.
  • Li Lu’s investment philosophy.
  • The four key investment principles he adheres to.
  • Li Lu’s view on investing in China.
  • An overview of Alphabet, one of Li Lu’s top holdings.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] Clay Finck: Hey everybody, welcome to The Investor’s Podcast. I’m your host, Clay Finck. And today I’m going to be sharing what I learned from studying the investment approach of billionaire value investor, Li Lu. Li Lu is the founder and chairman of Himalaya Capital, which is a multi billion dollar investment firm that primarily focuses on long term investment opportunities.

[00:00:23] Clay Finck: In Asia and the U. S. Himalaya Capital was started by Li Lu back in 1997. And as of September 2023, it looks like the firm manages around 14 billion in assets. Li Lu is well known for being close friends with Charlie Munger and Monish Pabrai, and he rarely does public appearances. So during this episode, I’m going to be sharing what I found after scouring through all publicly available resources I could get my hands on.

[00:00:51] Clay Finck: In fact, when Charlie Munger recently passed away, part of his 2. a 5 billion fortune was invested with Li Liu, who he referred to as the Chinese Warren Buffett. With that, let’s get right to it.

[00:01:06] Intro: Celebrating 10 years and more than 150 million downloads. You are listening to The Investor’s Podcast Network. Since 2014, we studied the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Clay Finck .

[00:01:27] Clay Finck: So I wanted to kick this episode off and just share what’s on Himalaya Capital’s website. At the top, they share a quote from Charlie Munger on the seamless web of deserved trust. I quote, the highest form which civilization can reach is a seamless web of deserved trust. Not much procedure, just totally reliable people correctly trusting one another end quote.

[00:01:50] Clay Finck: I’m not exactly sure what personally led him to posting this quote specifically, but it reminds me of the early days of Li Lu, which I’ll be getting into a little bit here. So Li Lu has one of the most interesting backstories of all the investors I’ve studied on this show. He was born and raised in China, and his parents were sent to labor camps by the government, so he transitioned through multiple orphanages and caretakers growing up.

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