Chit Chat Stocks Li Lu - The Chinese Warren Buffett (How He Finds 100 Baggers)
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Apr 16, 2025 Li Lu, known as the 'Warren Buffett of China,' shares his fascinating journey from the Cultural Revolution to becoming a top investor. He highlights his investment philosophy through case studies of Timberland and BYD, emphasizing patience and the value of strong management. The discussion also touches on the rapid rise of Kwe Chow Mutai and offers macroeconomic insights into China’s dynamic market. Listeners gain valuable lessons on evaluating businesses with sustainable advantages and adapting strategies to different economies.
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Li Lu's Remarkable Early Life
- Li Lu survived the Tangshan earthquake and led 1989 pro-democracy protests in China before escaping to the U.S. as a political fugitive.
- He learned English in one summer and earned multiple degrees at Columbia University, ignited by a life-changing Warren Buffett lecture.
Li Lu's Investment Philosophy
- Li Lu blends deep value and high-quality compounder investing, focusing on great businesses with strong management.
- He balances patience with activity, waiting for the "fat pitch" but acting decisively when opportunities arise.
Timberland Deep Value Investment
- Li Lu's early value investment in Timberland uncovered hidden assets and management trustworthiness through meticulous due diligence.
- This 700% gain demonstrated his investigative approach and flexibility beyond typical compounder investing.