In the investment world of 2026, where many seek safety in broad diversification, Li Lu is once again proving that the path to outsized wealth often lies in uncompromising concentration. The manager of Himalaya Capital, frequently referred to as the “Chinese Warren Buffett,” is practicing what Charlie Munger preached: betting heavily on your best ideas rather than diluting returns through excessive diversification.

As of May 2026, Himalaya Capital’s lean portfolio is reaping the rewards. While many analysts warned of overvaluation in the tech sector, Li Lu remained steadfast in his core holdings, and the results are speaking for themselves.

The Giant Hiding in Plain Sight: Why Google is Still a Value Play

Alphabet (GOOG) serves as the undisputed backbone of Li Lu’s portfolio. With a weighting exceeding 43%, Himalaya’s performance is intrinsically tied to the search and AI giant. The stock, which has surged 22% year-to-date and 133% over the last 12 months, is benefiting from the maturation of its generative AI models and their deep integration into core services.

Despite the parabolic run, Li Lu and other value-oriented investors still see an opportunity. Trading at a P/E ratio of 29.3, Alphabet’s valuation remains “reasonable” compared to other tech peers showing similar innovation in AI. For a long-term investor like Li Lu, the company represents a high-quality business with an impenetrable moat, justifying such a massive allocation.

Energy Fueling the Upside

While Alphabet provides the technological growth engine, Occidental Petroleum (OXY) offers an energetic hedge. The stock has climbed 40% since the start of 2026, primarily due to oil prices hitting triple digits following escalations in the Strait of Hormuz.

Occidental, which is also a significant holding for Warren Buffett’s Berkshire Hathaway, demonstrates Li Lu’s ability to find value in traditional sectors. Analysts suggest that as long as oil prices remain elevated, the company will continue to generate massive cash flows, providing a solid counter-balance to the portfolio’s tech-heavy exposure.

Outlook: The Patience of a Hunter

The most vital lesson from Himalaya Capital’s performance this year isn’t just about stock picking—it’s about patience. Li Lu is famous for his inactivity; he is perfectly willing to sit on his hands for quarters at a time, letting his high-quality businesses do the heavy lifting.

“It doesn’t get more ‘Charlie Munger’ than this,” market observers note regarding his management style. In an era dominated by day-trading and high volatility, Li Lu’s strategy serves as a potent reminder that calculated concentration, combined with a deep understanding of business quality, remains the winning formula for achieving significant alpha.