About
Li Lu is a Chinese-American investor, fund manager, and author who is widely regarded as one of the most successful emerging markets investors and a leading expert on Chinese markets. Here's who he is:
Li Lu was born in 1966 in China and came to prominence as a student leader during the 1989 Tiananmen Square protests before fleeing to the United States. After earning degrees from Columbia Law School and Columbia Business School, he founded Himalaya Capital Management in 1997, focusing primarily on investments in China and other emerging markets. His fund has delivered exceptional long-term returns by identifying undervalued opportunities in rapidly growing economies.
Li Lu is known for his deep understanding of both Eastern and Western business cultures, allowing him to bridge the gap between Chinese companies and Western investors. His investment philosophy combines Benjamin Graham's value investing principles with insights from his unique background and understanding of emerging market dynamics. He focuses on buying high-quality businesses at reasonable prices and holding them through long-term growth cycles.
Beyond his investment success, Li Lu has gained recognition as Warren Buffett's protégé and potential successor. Buffett has invested Berkshire Hathaway money with Li Lu and has praised his investment acumen and character. Li Lu's influence extends beyond investing through his writing about Chinese markets, his role in educating Western investors about Asian opportunities, and his work bridging cultural and business understanding between East and West.
Li Lu's Best Quotes
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"Value investing is not about buying cheap stocks; it's about buying stocks that are trading below their intrinsic value."
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"Understanding culture is as important as understanding numbers when investing in emerging markets."
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"The best investments are often found where others fear to tread, but you must distinguish between fear and genuine risk."
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"China's transformation represents one of the greatest investment opportunities in human history, but it requires patience and local understanding."
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"Investment success in emerging markets requires both global perspective and local insight."
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"The key to long-term investing is finding businesses that can compound value over decades, regardless of short-term market volatility."
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"Western investors often underestimate the sophistication and entrepreneurial spirit of Chinese business leaders."
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"Risk comes from not knowing what you're doing, not from the country or market where you're investing."
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"The greatest opportunities often arise from the intersection of technological change and societal transformation."
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"Successful investing requires intellectual humility - admitting what you don't know and constantly learning."
Written Works
"Civilization, Logic, and Investment"
Li Lu's comprehensive work on investment philosophy that integrates his unique perspective as someone who has lived through both Chinese and American economic systems. The book explores how civilizational understanding informs investment decisions, the logic behind value investing in different cultural contexts, and how to identify long-term investment opportunities in rapidly changing societies. It provides frameworks for understanding emerging markets through both quantitative analysis and cultural insight.
Himalaya Capital Annual Letters
Li Lu's annual letters to Himalaya Capital investors provide detailed insights into his investment philosophy and real-time analysis of Chinese and emerging market opportunities. These letters combine rigorous fundamental analysis with geopolitical insights and cultural observations. His letters during major events like the Asian Financial Crisis, China's WTO entry, and recent US-China tensions provide valuable perspectives on investing during periods of uncertainty.
"From Tiananmen to Wall Street" Memoir Essays
Through various publications, Li Lu has written about his journey from student activist to successful investor, providing unique insights into both Chinese society and American financial markets. His memoir pieces explore how his background influences his investment approach and offer perspectives on bridging Eastern and Western business cultures.
"Investing in China" Market Analysis Papers
Li Lu has produced extensive research on Chinese markets, covering topics like regulatory environments, corporate governance, and long-term growth drivers. His papers provide Western investors with frameworks forunderstanding Chinese businesses and navigating the complexities of investing in China's evolving market economy.