We Study Billionaires - The Investor’s Podcast Network

TIP636: Billionaire Investing Legend Li Lu w/ Clay Finck

Jun 9, 2024

53:16

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Billionaire investor Li Lu discusses his early life, investment philosophy, and key principles. He shares insights on investing in China and Alphabet. Li Lu's journey from value to quality investing, Circle of Competence, and successful investments are also highlighted.

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Quick takeaways

Li Lu's investment philosophy is rooted in four key principles emphasizing long-term value and margin of safety.

Despite facing adversity, Li Lu's exceptional determination and intelligence propelled him to academic excellence.

Li Lu's strategic investment in established companies like Alphabet reflects his balanced approach to value investing and future opportunities.

Deep dives

Li Lu's Unique Investment Approach

Li Lu, the founder of Himalaya Capital, is praised for his investment approach similar to Warren Buffett and Charlie Munger. Despite his humble beginnings with a tumultuous past in China, he excelled academically and built a remarkable investment career. Leeloo's multi-billion dollar firm focuses on long-term investments, demonstrating his unrelenting work ethic and intelligence.

Value Investing and Company Knowledge

01:30

Investing Strategy and Personal Edge

01:26

Principles of Value Investing

01:23

Analyzing Li Lu's Investment Moves and Alphabet's Business Strategy

04:40

Intro

2min

The Inspiring Journey and Investment Approach of a Chinese-Born Legend

9min

Investment Journey, Analytical Approach, and AI-powered Tools

9min

Courage, Deep Insights, and Unconventional Thinking in Investing

13min

Principles of Value Investing and Importance of Circle of Competence

7min

Li Lu's Investing Approach and Success Stories

16min

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.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:27 - The back story of Li Lu’s early life.

06:46 - Li Lu’s investment philosophy.

08:28 - The four key investment principles he adheres to.

29:36 - Li Lu’s view on investing in China.

44:52 - An overview of Alphabet, one of Li Lu’s top holdings.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
Li Lu’s book: Moving the Mountain.
Check out: FT Magazine Article.
Check out: Li Lu’s 2006 talk at Columbia.
Related Episode: RWH008: Playing to Win w/ Mohnish Pabrai | YouTube video.
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Check out all the books mentioned and discussed in our podcast episodes here.
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