Li Lu

Profile & Investment Philosophy

Li Lu, founder of Himalaya Capital, spent Q2 2026 doing what he does best: subtracting. The portfolio shrank from fourteen positions to eight as he sold out of Bank of America, Occidental, S&P Global, Moody's, H&R Block and MSCI entirely. What remains is a $3.7 billion book of extreme conviction - Alphabet's two share classes together make up 48%, while PDD Holdings was more than doubled (+134%) to 22% and Berkshire Hathaway raised by 24%. It is the sharpest illustration yet of his blend of Berkshire value principles and deep expertise in Chinese consumer platforms.

Track Record

Li Lu's Himalaya Capital, founded in 1997, has compounded at well above public market returns over more than two decades, with Charlie Munger personally entrusting most of his family money to the firm. Munger described Li Lu as the only outside manager he ever fully backed. AUM is reported in the low double-digit billions of dollars, deliberately kept small relative to opportunity. The strategy is concentrated value across US and Chinese listed equities, with very low turnover and long holding periods. The track record is private, but Munger's public endorsement and the persistence of his family allocation are the strongest available signal.

Signature Trades

Current Strategy (2026)

Himalaya's 2026 US 13F is the most concentrated it has ever looked: Alphabet (GOOGL plus GOOG) makes up roughly 45% of the disclosed equity book, an unusually large single-company bet for a value manager. Bank of America has been cut by about 71% from prior reporting, a clear reduction of the financials weight. The remaining slots are dominated by a handful of long-term US compounders and selective Asian listings that do not show up in US filings. The picture is of a manager doubling down on a search-and-AI thesis around Google while taking risk off elsewhere, consistent with Li Lu's view that quality at a fair price is preferable to mediocrity at a cheap price.

Li Lu is the cleanest living example of the Munger doctrine: very few names, very long horizons, no apology for concentration. The 45% Alphabet bet is either visionary or one antitrust ruling away from a public lesson in concentration risk. We respect the underwriting because it predates the AI hype, but allocating 45% of your own portfolio to a single stock because Himalaya does is misreading the structure: Li Lu has decades of family wealth around him and a permanent capital base. You probably do not. Treat Alphabet's weight as a conviction signal, not as a sizing recipe.

Latest SEC Form 13F filing. Total portfolio value: $3.70 B. Holdings: 8 positions.