Li Lu's Himalaya Capital Bets Big on Alphabet and PDD Holdings

Li Lu, known as the Chinese Warren Buffett, has built an impressive investment portfolio through his firm Himalaya Capital. He attributes his value investing approach to Warren Buffett's influence and a close relationship with Charlie Munger, who referred to him as the 'Chinese Warren Buffett.'

Himalaya Capital runs a concentrated stock portfolio of seven stocks, with 70% of its capital invested in just two companies: Alphabet (48%) and PDD Holdings (22%). The firm first started buying Alphabet in the second quarter of 2020 and has significantly increased its position since then.

Alphabet's shares have performed well since Himalaya began investing in the company. However, investors have been concerned about challenges facing Google, including a Department of Justice lawsuit alleging monopolistic practices. While a federal judge agreed with the DOJ, he stopped short of imposing punitive measures.

PDD Holdings has struggled due to the trade war between the U.S. and China, as well as fierce competition in the Chinese e-commerce market. Despite these challenges, Lu's team believes the stock is cheap and has significant potential for growth in the Chinese economy.