📖Li Lu
Continuous Improvement System
Treat investing as a craft that can always improve.
Review every investment decision — wins and losses — to improve your system. The best investors treat investing as a craft that can always be refined.
🏠 Everyday Analogy
📖 Core Interpretation
Li Lu treats survival as the first objective. Limiting permanent capital loss, controlling leverage, and avoiding single-point failure are prerequisites for long-term compounding.
💎 Key Insight：Post-mortem analysis drives systematic improvement.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
A single large drawdown can erase years of progress. Risk control is not timidity; it is the operating system that keeps compounding alive.
🎯 How to Practice
Define downside scenarios before entry, cap position size, avoid fragile leverage, and maintain liquidity so mistakes remain survivable.
⚠️ Common Pitfalls
Equating volatility with all forms of risk
Oversized positions without an exit plan
Using leverage to compensate for uncertainty
📚 Case Studies
1
BYD Investment with Berkshire (2008)
Li Lu introduced Warren Buffett to BYD, investing when markets doubted Chinese automakers and battery technology, focusing on electric vehicles and energy storage.
✨ Outcome：BYD’s value multiplied over the following decade, becoming one of the world’s leading EV and battery companies, validating the long-term China opportunity.
2
Hainan Airlines Investment (1998)
Li Lu invested in Hainan Airlines when it faced financial distress, focusing on long‑term business value rather than market pessimism.
✨ Outcome：The airline recovered and expanded; the investment compounded significantly, illustrating owner mentality and patience.
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →