When you think of legendary investors, names like Warren Buffett and Charlie Munger probably come to mind. But did you know there’s a remarkable investor often called “the Warren Buffett of China”? Meet Li Lu—a man whose journey from orphaned activist to billionaire investor is as inspiring as it is instructive.
Who Is Li Lu?
Li Lu’s story is the stuff of movies. Born in 1966 during China’s Cultural Revolution, he lost his parents at a young age and was raised by the state. But adversity only fueled his determination. As a student, Li Lu became a leader in the 1989 Tiananmen Square protests, risking everything for his beliefs.
From Activist to Ivy League Scholar
After leaving China, Li Lu’s next chapter unfolded in the United States. He attended Columbia University, where he pulled off the incredible feat of earning a BA, JD, and MBA—simultaneously! It was at Columbia that Li Lu first encountered Warren Buffett, whose value investing philosophy would shape his own approach. Even more pivotal was his relationship with Charlie Munger, who became both a mentor and an early investor in Li Lu’s fund.
Founding Himalaya Capital
In 1997, Li Lu founded Himalaya Capital, a firm that would become synonymous with long-term, high-conviction investing. His approach? Focus on a few outstanding businesses, understand them deeply, and hold them for the long haul. This strategy has delivered exceptional returns for over two decades.
Li Lu’s Value Investing Philosophy
So, what sets Li Lu apart? Like Buffett and Munger, he believes in:
Intrinsic value: Only invest in companies trading below their true worth.
Margin of safety: Always leave room for error.
Circle of competence: Stick to what you know best.
Patience: Let your investments compound over time.
Li Lu’s blend of Eastern and Western perspectives gives him a unique edge in spotting opportunities others might miss.
Legendary Investments: BYD and Kweichow Moutai
Li Lu’s investment in BYD, the Chinese electric vehicle giant, is legendary. In 2008, he convinced Charlie Munger and Warren Buffett to invest in BYD, recognizing its potential long before EVs were mainstream. The result? A more than 20x return as BYD’s revenues soared.
Another gem in his portfolio is Kweichow Moutai, China’s most famous liquor brand. Li Lu saw the company’s strong brand, pricing power, and consistent free cash flow—hallmarks of a great long-term investment.
What Can We Learn from Li Lu?
Li Lu’s journey offers powerful lessons for investors and dreamers alike:
Invest in what you understand.
Be patient—great things take time.
Have conviction, but stay humble and adaptable.
Blend the best ideas from different cultures and disciplines.
Li Lu’s Lasting Legacy
Today, Li Lu is more than just a successful investor. He’s a bridge between East and West, a mentor to the next generation, and living proof that value investing works across borders. His story reminds us that with resilience, curiosity, and integrity, it’s possible to change your destiny—and maybe even the world.
Inspired by Li Lu’s story?
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