Who Is Li Lu and What Is His Investment Approach
Li Lu is a Chinese-American value investor and founder of Himalaya Capital Management, known for a concentrated, long-term, value-oriented approach. He studied at Columbia Business School under Benjamin Graham’s framework and later worked with Charlie Munger, shaping a strategy focused on deep research, margin of safety, and business quality.
His approach emphasizes identifying durable competitive advantages, honest management, and attractive valuations, often holding a small number of large positions. He is recognized for early investments in companies such as BYD and Tesla, where he applied a patient, fundamental analysis style rather than short-term trading.
Key Investments and Portfolio Holdings
Li Lu’s most widely noted investment is BYD, the Chinese electric vehicle and battery company, which he began acquiring in the early 2000s through Himalaya Capital. His long-term conviction in BYD helped the fund deliver outsized returns as the company grew into a global EV leader.
Himalaya Capital also built a significant stake in Tesla, with filings showing it as a major shareholder during the company’s growth phase. The portfolio reflects a focus on disruptive businesses with strong unit economics, visionary founders, and scalable models, while avoiding excessive diversification.
Li Lu’s Influence on Value Investing and Activism
Li Lu is considered a bridge between traditional Graham-and-Doddsville value investing and modern activist and long-horizon growth investing. His letters and public commentary emphasize patience, business understanding, and the importance of buying wonderful companies at fair prices.
His track record has influenced a generation of investors who study his concentrated portfolio and contrarian timing, particularly in China-focused equities and clean energy. Investors seeking a disciplined, research-intensive model often reference Himalaya Capital as a case study in long-term compounding.