Charlie Munger has invested practically $90 million of his household’s fortune with Lee Lu. And the “Chinese language Warren Buffett” turned it into about $400 million.

Charlie Munger has invested nearly $90 million of his family's fortune with Lee Lu.  And the "Chinese Warren Buffett" turned it into about $400 million.
Warren Buffet and Charlie Munger

Warren Buffett and Charlie Munger.Johannes Eisel/Getty Photos

  • Charlie Munger handed $88 million to Lee Lu when the worth investor launched a brand new fund in 2004.

  • Warren Buffett’s right-hand man says he is made 4 or 5 occasions as a lot cash since then.

  • Munger additionally discusses BYD and one other of Li’s prime inventory picks in a brand new interview.

Charlie Munger handed over practically $90 million of his household fortune to Lee Lu within the early 2000s. Worth Investor by Munger It has been dubbed The Chinese language Warren Buffett has grown to just about $400 million since then.

“We have had good, unholy returns for a really very long time,” Munger instructed the Monetary Instances for a very long time. Li’s new profile. “The $88 million has grow to be 4 or 5 occasions that.”

Munger, 99, is Buffett’s enterprise associate Berkshire Hathawayvp. The Monetary Instances reported that Munger met Lee at a Thanksgiving lunch in 2003, and was so impressed that when Lee launched a brand new fund in 2004, Munger backed it together with his personal cash.

Li Lu is standing behind the stage with a microphone.

Lee Lu.JPM / Getty Photos

Lee’s successful bets embrace Kweichow Moutai, the distilled liquor model that has skyrocketed in worth over the previous 20 years and is now among the many largest listed firms in China.

“It was very low-cost, 4 to 5 occasions the earnings,” Munger mentioned. “And Li Lu backed the truck, purchased the whole lot he may and made a homicide.”

Nevertheless, Li’s most notable inventory choose is undoubtedly BYD. He invested in a battery and electrical automobile maker in 2002, paving the way in which for Buffett and Monger. Buy their own share after six years. The wager has been among the best performing bets in Berkshire over the previous 15 years.

“It labored out rather well, and the early funding in BYD was a minor miracle,” Munger instructed the newspaper.

BYD Seagull electric hatchback in yellow.

BYD makes electrical automobiles just like the Seagull.BYD

The ageless investor additionally reversed Li’s historical past as a Tiananmen Sq. pupil protester.

“Lee Lu is now not a revolutionary,” Munger mentioned. “He is a capitalist. You’ll be able to’t discover a extra capitalist than Li Lu.”

Buffett, Munger, and Lee Step back a lot. For instance, Lee determined to pursue a profession in investing after listening to Buffett’s lecture at Columbia College in 1993.

Munger mentioned Lee was the one outsider he trusted together with his cash and as soon as anticipated Lee to finally take a management position at Berkshire.

On prime of that, Lee moved his Himalaya Capital Administration agency from New York to California to be nearer to Munger earlier than inserting it within the lower-tax state of Washington in 2018. He has additionally organized his workplace like a small Berkshire, with groups of analysts digging into the pool. chosen. The Monetary Instances stories that a number of firms share their outcomes immediately with him.

Himalaya owned $306 million in Berkshire inventory on the finish of June. Securities and Exchange Commission filings appear. Buffett’s firm was one of many few facilities within the $1.8 billion portfolio of US equities, together with Alphabet, East West Bancorp and two of Berkshire’s flagships: Apple and Financial institution of America.

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