📖Li Lu
Inversion Thinking
Invert problems to find insights forward thinking misses.
Instead of asking how to succeed, ask how to avoid failure. Inverting problems often reveals insights that forward thinking misses.
🏠 Everyday Analogy
📖 Core Interpretation
Li Lu advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：Avoiding failure is often more productive than pursuing success.
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❓ Why It Matters
Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.
🎯 How to Practice
Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.
⚠️ Common Pitfalls
Having opinions without execution criteria
Reviewing outcomes but not decisions
Abandoning rules during volatility spikes
📚 Case Studies
1
BYD Early Investment (2003)
Li Lu, through Himalaya Capital, invested in Chinese battery and EV maker BYD before mainstream recognition, analyzing its engineering strength and founder quality.
✨ Outcome：BYD grew into a global EV leader; the multibagger return validated concentrated, owner‑like investing.
2
Post‑Crisis BYD Volatility (2011)
After initial success, BYD’s stock price fell sharply amid concerns over growth, competition, and China’s EV policy shifts.
✨ Outcome：Li Lu maintained a concentrated stake, emphasizing intrinsic value; the company later recovered and reached new highs as EV adoption accelerated.
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