Li Lu, often referred to as the “Chinese Warren Buffett,” is a prominent figure in the world of investing. As the founder and chairman of Himalaya Capital Management, Li Lu has built a reputation for his astute investment acumen and disciplined approach, drawing comparisons to legendary investor Warren Buffett. But Li Lu’s journey from a student activist during the Tiananmen Square protests to a highly respected investor is a remarkable story of resilience, determination, and visionary thinking.
Early Life and Journey to the U.S.
1. From China to the United States:
- Tiananmen Square Protests: Born in 1966 in Tangshan, China, Li Lu’s early life was marked by the tumultuous events of the Tiananmen Square protests in 1989. As a student leader, he played a significant role in the demonstrations advocating for democracy and reform in China.
- Exile and Emigration: Following the violent crackdown on the protests, Li Lu fled China and eventually sought asylum in the United States. His escape and the subsequent move to the U.S. would set the stage for his future endeavors.
2. Academic Pursuits:
- Columbia University: Li Lu’s academic journey in the U.S. began at Columbia University, where he pursued a triple major in Economics, Philosophy, and Business. His time at Columbia was pivotal, providing him with a strong foundation in analytical thinking and business principles.
- Inspiration from Benjamin Graham: At Columbia, Li Lu was deeply influenced by the teachings of Benjamin Graham, the father of value investing, whose ideas would shape his investment philosophy.
Building Himalaya Capital
1. The Birth of an Investment Firm:
- Founding Himalaya Capital: In 1997, Li Lu founded Himalaya Capital Management with a vision to apply value investing principles in the rapidly changing global economy. Initially focusing on technology and energy sectors, his firm soon expanded to invest in diverse industries.
- Long-Term Value Investing: Emulating the value investing approach of Warren Buffett, Li Lu’s strategy emphasized identifying undervalued companies with strong fundamentals and holding them for the long term.
2. Investment Philosophy:
- Disciplined Research: Li Lu is known for his rigorous research and deep understanding of the businesses he invests in. His approach involves thorough analysis, focusing on companies with sustainable competitive advantages and robust growth prospects.
- Focus on Quality: He seeks out high-quality businesses, often with a significant margin of safety, which can generate substantial returns over time.
3. Notable Investments:
- BYD Company Limited: One of Li Lu’s most famous investments is in BYD, a leading Chinese manufacturer of electric vehicles and batteries. His early and substantial investment in BYD has been lauded as a visionary move, yielding impressive returns as the company grew into a global leader in green technology.
- Partnership with Charlie Munger: Li Lu’s investment prowess caught the attention of Charlie Munger, Warren Buffett’s long-time business partner. Munger not only invested in Himalaya Capital but also encouraged Li Lu’s involvement in Berkshire Hathaway’s investments.
Philosophy and Influence
1. Embracing Uncertainty:
- Adaptability and Resilience: Li Lu’s life story, from a student activist to a successful investor, embodies resilience and the ability to adapt to changing circumstances. He believes that facing uncertainty with a strategic mindset is crucial for success in both life and investing.
2. Intellectual Curiosity:
- Lifelong Learning: Li Lu emphasizes the importance of continuous learning and intellectual curiosity. He maintains that a broad and deep understanding of various industries and market dynamics is essential for making informed investment decisions.
3. Ethical Investing:
- Integrity and Responsibility: Ethical considerations play a significant role in Li Lu’s investment approach. He advocates for investing in companies that not only promise financial returns but also contribute positively to society and operate with integrity.
Legacy and Future Vision
1. Mentoring the Next Generation:
- Influence on Investors: Li Lu’s success and investment philosophy have made him a mentor and role model for aspiring investors globally. His principles of value investing and disciplined research continue to inspire the next generation of investors.
- Education and Advocacy: Beyond investing, Li Lu is committed to education and philanthropy. He actively supports initiatives that promote understanding and cooperation between China and the U.S., and advocates for sustainable and ethical business practices.
2. Vision for the Future:
- Global Impact: As Li Lu looks to the future, his focus remains on identifying transformative opportunities in the global economy. He believes in the potential of innovation and technology to drive positive change and create long-term value for investors and society.
3. Contributions to Sino-American Relations:
- Bridge Building: Through his work and advocacy, Li Lu seeks to build bridges between China and the U.S., fostering greater understanding and collaboration in the business and investment communities.
