Exploring Li Lu (Trades, Portfolio)'s Investment Philosophy and Recent Portfolio Adjustments

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Li Lu (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2025, providing insights into his investment moves during this period. Born and raised in China, Li Lu (Trades, Portfolio) attended Columbia University, where he received three degrees simultaneously: B.A., J.D., and M.B.A. from Columbia College, Law School, and Business School. In 1997, he founded Himalaya Capital, a multibillion-dollar investment firm that primarily focuses on long-term investment opportunities in Asia and the U.S. Li Lu (Trades, Portfolio) currently serves as a member of the Board of Trustees of Columbia University and a member of the Board of Trustees of California Institute of Technology (Caltech). He is also a member of the Committee of 100, the Council on Foreign Relations, and an Aspen Institute Henry Crown Fellow. He is featured in the Smithsonian Institute's Family of Voices, part of the ongoing Many Voices, One Nation exhibition at the National Museum of American History. He is the author of "Moving The Mountain: My Life in China" (1990 in English) and "Civilization, Modernization, Value Investing---and China" (2020 in Chinese). Li Lu (Trades, Portfolio)'s firm embraces the value investment principles of Benjamin Graham, Warren Buffett (Trades, Portfolio), and Charlie Munger. It primarily focuses on publicly traded companies in Asia, with an emphasis on China. The firm aims to achieve superior returns by being long-term owners of high-quality companies with a substantial economic moat, great growth potential, and are run by trustworthy people. Li Lu (Trades, Portfolio) said, "In making investments, I have always believed that you must act with discipline whenever you see something you truly like. To explain this philosophy, Buffett/Munger likes to use a baseball analogy that I find particularly illuminating, though I myself am not at all a baseball expert. Ted Williams is the only baseball player who had a .400 single-season hitting record in the last seven decades. In the Science of Hitting, he explained his technique. He divided the strike zone into 77 cells, each representing the size of a baseball. He would insist on swinging only at balls in his best cells, even at the risk of striking out, because reaching for the worst spots would seriously reduce his chances of success."Li Lu's Strategic Moves: Significant Reduction in Bank of America Corp Holdings

Key Position Reduces

Li Lu (Trades, Portfolio) also reduced position in 3 stocks. The most significant changes include:

Story Continues

Reduced Bank of America Corp (NYSE:BAC) by 4,234,500 shares, resulting in a -23.42% decrease in shares and a -6.86% impact on the portfolio. The stock traded at an average price of $44.56 during the quarter and has returned -4.90% over the past 3 months and 1.62% year-to-date. Reduced Alphabet Inc (NASDAQ:GOOG) by 592,700 shares, resulting in a -19.47% reduction in shares and a -4.16% impact on the portfolio. The stock traded at an average price of $183.12 during the quarter and has returned -11.39% over the past 3 months and -13.05% year-to-date.

Portfolio Overview

At the first quarter of 2025, Li Lu (Trades, Portfolio)'s portfolio included 8 stocks, the top holdings included 26.12% in Bank of America Corp (NYSE:BAC), 21.61% in Berkshire Hathaway Inc (NYSE:BRK.B), 17.78% in Alphabet Inc (NASDAQ:GOOGL), 17.31% in Alphabet Inc (NASDAQ:GOOG), 11.26% in East West Bancorp Inc (NASDAQ:EWBC).

The holdings are mainly concentrated in 4 of all the 11 industries: Financial Services, Communication Services, Energy, Technology.Li Lu's Strategic Moves: Significant Reduction in Bank of America Corp Holdings

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

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