#1
Deep Research
"Understand the business deeply before investing. Read everything available. Talk to customers and competitors."
Deep business understanding through exhaustive research is the foundation of investing.
Read Full Analysis →
Li Lu📌 Business Judgment
Li Lu's Business Judgment Rules
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...
3 principles·Business Judgment
3 Key Business Judgment Principles
#2
Owner Mentality
"Think like an owner, not a trader. Would you want to own this entire business?"
Think like an owner evaluating entire business acquisition, not a trader.
Read Full Analysis →#3
Management Evaluation
"Evaluate management by their actions, not their words. Look for a track record of capital allocation, shareholder communication, and aligned incentives."
Judge management by actions, not words.
Read Full Analysis →Frequently Asked Questions
What are Li Lu's key business judgment principles?
Li Lu has 3 key principles on business judgment. The most important one is "Deep Research" — Understand the business deeply before investing.
How does Li Lu apply business judgment in practice?
Li Lu applies business judgment through several key principles including "Deep Research" and "Owner Mentality". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Li Lu's approach to business judgment unique?
Li Lu's approach to business judgment is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Li Lu provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
