#1
Quality at a Fair Price
"The ideal investment is a high-quality business purchased at a fair price. Quality compounds wealth; fair prices protect capital."
Seek quality businesses at fair prices.
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Li Lu📌 Stock Picking
Li Lu's Stock Picking 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·Stock Picking
3 Key Stock Picking Principles
#2
Understand Before Investing
"Never invest in a business you cannot explain in simple terms. If you can't describe why a company is valuable, you don't understand it well enough to own it."
Only invest in what you can explain simply.
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Catalyst-Aware Stock Picking
"Look for investments where a specific catalyst will unlock value. Without a catalyst, even cheap stocks can remain undervalued indefinitely."
Identify specific catalysts that will unlock value.
Read Full Analysis →Frequently Asked Questions
What are Li Lu's key stock picking principles?
Li Lu has 3 key principles on stock picking. The most important one is "Quality at a Fair Price" — The ideal investment is a high-quality business purchased at a fair price.
How does Li Lu apply stock picking in practice?
Li Lu applies stock picking through several key principles including "Quality at a Fair Price" and "Understand Before Investing". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Li Lu's approach to stock picking unique?
Li Lu's approach to stock picking 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.
