Subject: Li Lu - Google
Li Lu is widely known as an excellent investor. He is the Founder of Himalaya Capital, and one of Charlie Munger’s closest friends, mentees, and investment partners. Munger called him the “Chinese Warren Buffett.”

Here’s what Li Lu did with $GOOG $GOOGL

𝟐𝟎𝟐𝟎 — Initiated a position, building it to 11.4% of his fund

𝟐𝟎𝟐𝟐 — Added aggressively during peak fear and uncertainty, growing it to over 22%

𝐓𝐨𝐝𝐚𝐲 (𝐚𝐬 𝐨𝐟 𝟏𝟐/𝟑𝟏/𝟐𝟓 𝟏𝟑𝐅) — $GOOG represents 43% of Himalaya Capital

Munger said it best: “Investing is where you find a few great companies and then sit in your ass.”
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A couple months ago I wrote about two camps of Google investors — those who bought at 15x earnings amid maximum fear, and those who bought after the AI breakout became undeniable. Both camps can be right. Different entry points. Different sources of edge.

Li Lu represents a third camp entirely — one that very few investors are capable of occupying. He was in both simultaneously.

He saw $GOOG as a deeply undervalued business — recognizing the asymmetric risk/reward at a lower earnings multiple when fear was at its peak. But unlike many from that first camp who trimmed or exited as the stock recovered, Li Lu maintained his conviction even as the company’s multiple expanded as the AI narrative became undeniable — the very thesis that drove the second camp.

That’s what makes this so commendable. Most investors anchor hard to one view and struggle to see beyond it. The buyer at a low earnings multiple takes profits when sentiment recovers. Li Lu didn’t anchor to that narrative. He saw the full picture from the beginning — and had the conviction to size and hold accordingly.

https://x.com/DimitryNakhla/st...