Li Lu, who in the past decade has earned the moniker “the Oracle of Asia,” is one of the world’s most respected value investors. Founder of Himalaya Capital, his strategy—grounded in value investing—has achieved an average annual return of about 30% since the late 1990s. His portfolio serves as a beacon for risk analysis, sector diversification, and geographic balance, drawing the attention of both institutional investors in Asia and Western analysts. The big question for global capital markets: Can Li Lu’s unique approach continue to outperform in an era of rapid innovation and high interest rates?

Quantitative View – How Is Li Lu’s Portfolio Built?
Li Lu’s current portfolio composition heavily favors U.S. banking, with Bank of America accounting for about 27.9%. Alphabet, Google’s parent, makes up almost 40% when combining Class A and Class C shares. Berkshire Hathaway sits at 17%, providing exposure to insurance, railroads, industry, and retail. The rest of the portfolio includes East West Bancorp (2.8%), Occidental Petroleum (2.8%), and Apple (1%). This blend enables Li Lu to hedge risk, diversify sectors, and seek new growth drivers.

Strategy: Value Investing Adapted for the Technology Era
While fundamentally conservative, Li Lu’s approach isn’t stuck in the past. Like Warren Buffett, he scrutinizes company balance sheets, management teams, and cash flows—but he also invests in cutting-edge technology stocks like Google and Apple. He believes that U.S. tech giants, especially those in cloud and advertising, will continue leading global innovation and profitability, particularly as artificial intelligence matures. This combination of classic value and tech exposure keeps the portfolio dynamic and attuned to the modern capital market.

Risk Management – Balancing U.S. Market with Global Outlook
Li Lu’s success is based on several risk management principles: he never overexposes to a single stock, adapts positions as regulations and markets shift, and maintains moderate geographic diversity. While most assets are U.S.-based, he is open to diversifying into Asia and Europe, especially when unique opportunities arise in renewable energy or digital banking. This cautious approach cushions the portfolio during downturns but also allows for strong gains in bull markets.

Is the Model Still Relevant? Competing with Speculative Capital
One of Li Lu’s biggest challenges in recent years has been the rise of speculative ETFs and short-term “momentum” investing. Unlike index funds or AI-driven stocks, Li Lu sticks with large, established, profitable companies—even at the cost of missing rapid rallies in new growth names. However, according to Himalaya Capital’s own data, his long-term returns have beaten most major stock indices. In a market where rates remain high, inflation is stubborn, and geopolitical uncertainty abounds, a balanced approach blending value and innovation is more relevant than ever for institutional investors.

ESG and Corporate Responsibility – Responsible Investing in the Capital Market
Li Lu places emphasis on corporate responsibility and ESG. Several holdings in the portfolio rank highly for ESG, and the fund reviews both their social/environmental impacts and their financial results. This grants a competitive advantage with institutional investors and attracts pension and insurance fund capital, especially in Asia and North America. This trend is likely to intensify as environmental regulations tighten worldwide.

Comparing Leading Investment Managers – What Sets Li Lu Apart?
Unlike investors such as Cathie Wood (ARK Invest), who favor revolutionary sectors like robotics and biotech, Li Lu prioritizes financial solidity, proven profitability, and tangible growth—not just “stories” of the future. This approach helps preserve liquidity, reduce volatility, and generate returns even in periods of uncertainty.

Opportunities and Challenges Ahead – AI, Digital Banking, and Emerging Markets
The future of Li Lu’s portfolio will depend heavily on AI development, digital banking disruption, and demographic shifts in Asia. If he can incorporate leading AI firms into his holdings while maintaining financial discipline, he could remain a global leader for the next decade. On the other hand, shifts in U.S. rates, regulatory reforms, or a slowdown in China could test his model.