Li Lu's Himalaya Capital has put 70% of its capital into just two stocks, Alphabet and PDD Holdings, according to the fund's second-quarter holdings. Munger personally invested tens of millions of dollars into Himalaya, the fund Lu founded in 1997.
Li Lu runs a concentrated stock portfolio of just seven stocks at Himalaya Capital, the fund he founded in 1997, and the portfolio was valued at over $3.7 billion at the end of the second quarter. At the end of that quarter, Lu had put 70% of Himalaya's capital into just two companies.
Lu's path to value investing ran through Columbia University, where he decided to become an investor after hearing Warren Buffett speak at a lecture there. He later built a close relationship with Buffett's longtime partner, Charlie Munger, who called Lu the "Chinese Warren Buffett" and put tens of millions of his own money into Himalaya. Before any of that, Lu had served as a student leader during the Tiananmen Square protests in 1989, was named to China's most-wanted list, and escaped to the United States.
Alphabet takes 48% of the fund
Alphabet accounts for 48% of Himalaya's capital, split between the stock's Class A and C shares. Himalaya first began buying Alphabet in the second quarter of 2020 and has significantly increased its position since then. Berkshire Hathaway has also recently made Alphabet one of its largest equity positions.
Alphabet has faced a Department of Justice lawsuit alleging that Google engaged in monopolistic practices in digital search and advertising. A federal judge agreed with the DOJ but stopped short of imposing the punitive measures investors feared, such as forcing a divestiture of Chrome or barring Alphabet's payments to Apple to remain the default search engine on Safari. Investors have also worried about competition from large language models challenging traditional search, though Google's AI overviews atop search results and its Gemini models have held up, alongside strength at YouTube, Waymo, its cloud unit, and its custom chip business. Alphabet's market cap stood at $4.2 trillion, and the stock trades at 16.4 times forward earnings.
PDD Holdings makes up 22%
PDD Holdings, the Chinese e-commerce company behind Pinduoduo and the international marketplace Temu, makes up 22% of Himalaya's capital. Himalaya has owned the stock since the second quarter of 2025 and has significantly increased its position since then, even as the shares have struggled.
The trade war between the U.S. and China, which broke out after President Donald Trump took office, has hurt Chinese companies, and PDD also faces fierce competition from Alibaba and JD.com. Decelerating economic growth in China may be pressuring the business as well. PDD trades at below nine times forward earnings.
Source: The Motley Fool
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