📖Li Lu
Quality at a Fair Price
Seek quality businesses at fair prices.
The ideal investment is a high-quality business purchased at a fair price. Quality compounds wealth; fair prices protect capital.
🏠 Everyday Analogy
📖 Core Interpretation
Li Lu emphasizes durable business quality over short-term noise. A strong model, real competitive edge, and disciplined capital allocation matter more than quarterly excitement.
💎 Key Insight：Quality and fair price together create optimal investments.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
Without business-quality filters, investors drift toward stories rather than economics. Durable cash generation is what supports long-term valuation.
🎯 How to Practice
Use a checklist covering moat, management, unit economics, and capital allocation; track long-term cash generation instead of quarter-to-quarter noise.
⚠️ Common Pitfalls
Buying narratives instead of cash-generating economics
Overreacting to short-term operating noise
Ignoring management quality and capital allocation
📚 Case Studies
1
Financial Crisis Bank Bets (2008)
During the global financial crisis, high‑quality U.S. financials traded at distressed prices despite strong franchises and survivable balance sheets.
✨ Outcome：Purchases made at large discounts to conservative intrinsic value estimates produced substantial gains as panic subsided and earnings normalized.
2
Investment in BYD (1999)
Li Lu analyzed BYD’s technological and cost advantages in batteries and autos, seeing a durable moat in engineering talent and vertical integration.
✨ Outcome：Backed BYD early; Berkshire Hathaway later invested, and BYD became a multibagger over the following decade.
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →