Li Lu - Himalaya Capital Management
Li Lu - Himalaya Capital Management Q2 2024 Portfolio
Himalaya Capital Management , a value investing firm managed by Li Lu, disclosed 6 security holdings in their SEC 13F filing for the second quarter of 2024, with a total portfolio value of $2,561,615,000
As of Q2 2024, Li Lu’s portfolio through Himalaya Capital Management reflects a focused approach with significant investments in the financial, technology, and energy sectors. Below is a detailed overview of his top holdings:
BAC – Bank of America Corp.
- Portfolio Allocation: 28.07%
- Recent Activity: No change reported.
- Shares Held: 18,081,133.
- Reported Price: $39.77 per share.
- Value at Reported Price: $719,087,000.
Bank of America remains the largest holding in Li Lu’s portfolio, indicating strong confidence in the financial sector. This substantial allocation suggests a belief in the bank’s ability to navigate economic cycles and generate solid returns.
GOOG – Alphabet Inc. CL C
- Portfolio Allocation: 21.8%
- Recent Activity: No change reported.
- Shares Held: 3,044,000.
- Reported Price: $183.42 per share.
- Value at Reported Price: $558,330,000.
Alphabet’s Class C shares represent a significant part of the portfolio, underscoring confidence in the company’s continued growth and dominance in the technology sector, particularly in digital advertising and cloud services.
GOOGL – Alphabet Inc.
- Portfolio Allocation: 18.08%
- Recent Activity: No change reported.
- Shares Held: 2,543,300.
- Reported Price: $182.15 per share.
- Value at Reported Price: $463,262,000.
The holding in Alphabet’s Class A shares further emphasizes the importance of this tech giant in Li Lu’s investment strategy, showcasing continued belief in its innovation and diversified revenue streams.
BRK.B – Berkshire Hathaway CL B
- Portfolio Allocation: 14.26%
- Recent Activity: No change reported.
- Shares Held: 897,749.
- Reported Price: $406.80 per share.
- Value at Reported Price: $365,204,000.
Berkshire Hathaway’s Class B shares represent a substantial position, reflecting confidence in Warren Buffett’s conglomerate and its diversified portfolio of businesses and investments.
EWBC – East West Bancorp
- Portfolio Allocation: 7.94%
- Recent Activity: No change reported.
- Shares Held: 2,776,351.
- Reported Price: $73.23 per share.
- Value at Reported Price: $203,312,000.
East West Bancorp is a notable holding, indicating confidence in the regional banking sector and the bank’s growth potential, particularly in serving the Asian-American community.
AAPL – Apple Inc.
- Portfolio Allocation: 6.25%
- Recent Activity: No change reported.
- Shares Held: 759,600.
- Reported Price: $210.62 per share.
- Value at Reported Price: $159,987,000.
Apple Inc. remains a key position, reflecting belief in the company’s ongoing innovation, strong brand, and diversified product and service offerings.
OXY – Occidental Petroleum
- Portfolio Allocation: 3.61%
- Recent Activity: New Buy.
- Shares Held: 1,466,500.
- Reported Price: $63.03 per share.
- Value at Reported Price: $92,433,000.
The addition of Occidental Petroleum to the portfolio suggests Li Lu’s growing interest in the energy sector, betting on the company’s ability to capitalize on energy market dynamics and its strategic initiatives in oil and gas.
Analysis of Top Holdings:
1. Bank of America Corp.: The largest position, maintained, reflecting strong confidence in the financial sector’s resilience and Bank of America’s consistent returns.
2. Alphabet Inc. CL C: Significant investment in Alphabet’s Class C shares underscores confidence in the tech giant’s continued dominance and growth potential.
3. Alphabet Inc.: The Class A shares reinforce the belief in Alphabet’s future, maintaining a substantial position in the portfolio.
4. Berkshire Hathaway CL B: A consistent holding, highlighting trust in Warren Buffett’s diversified conglomerate.
5. East West Bancorp: Continued investment in regional banking, with a focus on niche markets.
6. Apple Inc.: A strong position in a leading technology company, indicating belief in its long-term innovation and market leadership.
7. Occidental Petroleum: New addition, reflecting interest in the energy sector and potential growth in oil and gas.
Overall, Li Lu’s Q2 2024 portfolio demonstrates a focused investment strategy with significant allocations in financial services, technology, and energy sectors. The portfolio adjustments suggest a balanced approach aimed at long-term growth and stability, with a keen eye on sectors that can offer sustainable returns.
Who is Li Lu ?
1966:
Born on April 6 in Tangshan, Hebei, China.
1976:
Survived the Tangshan earthquake, one of the deadliest in recorded history.
1985:
Enrolled at Nanjing University, initially majoring in Physics before transferring to Economics.
1989:
Became a leading figure in the Tiananmen Square student protests, organized students, and participated in a hunger strike. Fled to New York City after the protests were suppressed.
1990:
Published “Moving the Mountain: My Life in China,” a book about his experiences in China and the Tiananmen Square protests.
1990s:
Enrolled at Columbia University, first in the American Language Program, then in the School of General Studies, and later transferred to Columbia College.
1993:
Inspired to pursue investment after attending a lecture by Warren Buffett at Columbia University.
1996:
Graduated from Columbia University with three degrees: a B.A. in economics, an M.B.A., and a J.D. Began a career in investment banking as a corporate finance associate at Donaldson, Lufkin & Jenrette.
1997:
Founded Himalaya Capital Management, focusing on a disciplined and value-oriented approach to investing.
2003:
Met Charlie Munger, who became an investor in his fund and a mentor. This relationship led to the transformation of his hedge fund into a long-only investment vehicle.
2004-2013:
The fund was closed to new investors and focused on global investment opportunities without charging a management fee.
2010:
Withdrew from consideration to manage a significant portion of Berkshire Hathaway’s investment portfolio post-Warren Buffett.
2020:
Elected to The American Academy of Arts and Sciences. Co-founded the Guardians of the Angeles Charitable Foundation to address the global COVID-19 crisis. Published “Civilization, Modernization, Value Investment and China.”
2021:
Co-founded The Asian American Foundation, serving as its chairman, to support Asian American and Pacific Islander communities. Himalaya Capital Management reported managing almost US$18.5 billion in capital.
Ongoing:
Serves as a trustee for both Columbia University and the California Institute of Technology (Caltech). Recognized with several awards and honors, including the John Jay Award from Columbia College, the Raoul Wallenberg Human Rights Award, and the Reebok Human Rights Award. Featured in the Smithsonian Institute’s “Many Voices, One Nation” exhibition.
Li Lu's Investing Principles
Investing is about intellectual honesty. You want to know what you know. You want to know, mostly, what you don’t know.
Part of the game of investing is to come into your own. You must find some way that perfectly fits your personality because there is some element of a zero sum game in investing.
Investing is about predicting the future, and the future is inherently unpredictable. Therefore, the only way you can do better is to assess all the facts and truly know what you know and know what you don’t know. That’s your probability edge.
The game of investing is a process of discovering who you are, what you’re interested in, what you’re good at, what you love to do, then magnifying that until you gain a sizable edge over all the other people.
Being a value investor means you look at the downside before looking at the upside.
Because in investing the more you know the better off you are.
Stocks aren’t just little pieces of paper that you buy and sell. Each one is in fact a certificate bestowing fractional ownership of a company
As far as I can observe and speak to with statistics, there has only been one style which has reliably and safely brought investors exceptional long-term returns: value investing.