Li Lu
Li Lu's framework turns an investing idea into a decision memo: what to check, what to avoid, and what would change your mind. Use the 48 principles below as a checklist—not as buy/sell signals—and verify any numbers or quotes with primary sources. If you're new, start with Value Investing to frame business quality, valuation discipline, and risk, then browse topics to find the rules that match your situation. Pair each principle with a concrete trigger so you can review whether you followed the process after the decision.
- Start with the principles as questions (not trade signals).
- Write down your thesis, risks, and “what would change my mind”.
- Cross-check with scenarios, filings, and your own data sources.
Educational only. This is not investment advice.
"The essence of value investing is buying a business for less than it is worth."
About Li Lu
Li Lu (born April 6, 1966) is a Chinese-American investor and founder of Himalaya Capital Management. He is one of the few fund managers to have Charlie Munger as a personal investor, and Munger has called him one of the finest investors he has ever known. Born in China during the Cultural Revolution, Li Lu was a student leader during the 1989 Tiananmen Square protests. After coming to the United States, he earned degrees from Columbia University in economics, law, and business. He founded Himalaya Capital in 1997. Li Lu is best known for introducing BYD, the Chinese electric vehicle and battery manufacturer, to Charlie Munger and Warren Buffett. Berkshire Hathaway's investment in BYD, made in 2008, has been one of its most successful international investments. His investment philosophy combines Western value investing principles with deep knowledge of Asian markets, particularly China. Li Lu emphasizes understanding the fundamentals of businesses, investing within one's circle of competence, and maintaining a long-term perspective.
Core Investment Principles
Deep Research
Understand the business deeply before investing. Read everything available. Talk to customers and competitors.
→Circle of Competence
Stay within your circle of competence. Only invest in what you truly understand.
→China Opportunity
China represents one of the greatest investment opportunities of our time. Understand its unique dynamics.
→Owner Mentality
Think like an owner, not a trader. Would you want to own this entire business?
→Concentrated Portfolio
If you truly understand a business, concentrate. A few great investments beat many mediocre ones.
→Browse Li Lu's Principles by Topic
Famous Quotes
"The real risk in investing is the permanent loss of capital"
"not volatility."
"You have to be genuinely intellectually curious to be a good investor."
"The best investors are the best learners."
"Invest within your circle of competence and expand it gradually."
