Li Lu’s portfolio shows how capital is allocated at Himalaya Capital, the investment firm Li Lu founded in 1997. While often described under his name, the portfolio represents the firm’s concentrated U.S. equity positions, built around long-term ownership of a small number of high-conviction businesses. These holdings are disclosed quarterly through SEC Form 13F, giving investors a transparent look at which companies Himalaya Capital owns and how much capital is committed to each. For investors studying disciplined value strategies, Li Lu’s portfolio offers a direct view into how conviction translates into actual capital allocation.
Li Lu has built a career on patient, focused investing, taking a page from mentors Warren Buffett and Charlie Munger while shaping his own distinct discipline. As founder of Himalaya Capital, he manages billions with a conviction-driven approach that often runs counter to market trends. Rather than spreading capital across dozens of positions, he concentrates on a few high-quality companies he believes will compound value over decades. This style has rewarded investors with strong long-term gains, while demanding resilience during periods of volatility.
In Q4 2025, Himalaya Capital reported a $3.57 billion equity portfolio, concentrated in just nine holdings, marking the highest equity exposure in the firm’s history. The average holding period remains around 13 quarters, underscoring Li Lu’s focus on long-term ownership rather than frequent trading. The portfolio continues to lean heavily toward technology and financial services, where a small number of core positions dominate overall allocation.
Notably, no trades were made in Q3 2025, and only minor adjustments followed in Q4. This combination of inactivity and record exposure sends a clear signal. Li Lu was not repositioning for short-term market moves, but doubling down on existing convictions as he heads into 2026.
In the sections ahead, we will explore Li Lu’s investing background, his guiding principles, and how those ideas translate into his current portfolio decisions. You’ll see a detailed breakdown of Himalaya Capital’s Q4 2025 holdings, the biggest buys and cuts over the last couple of quarters, and how they fit into his broader strategy of concentrated, high-conviction investing.
Li Lu Portfolio in 60 Seconds
- Record equity exposure: The $3.57B valuation marks the highest reported equity allocation Himalaya Capital has ever disclosed.
- Extreme concentration: The top five positions account for over 87% of total portfolio value.
- Technology dominance: Alphabet (Google) alone represents more than 43% of assets across two share classes.
- Minimal diversification by design: Every position is intentional, sized for impact, and held over multi-year horizons.
Who Is Li Lu
Li Lu is a Chinese-born American investor, entrepreneur, and philanthropist best known as the founder of Himalaya Capital Management. Born in 1966 in Tangshan, China, his early life was shaped by major historical events that later influenced his long-term mindset. As a young man, he experienced the 1976 Tangshan earthquake and later became involved as a student leader during the 1989 Tiananmen Square protests. These experiences played a role in his eventual decision to leave China and pursue education and opportunity in the United States.
After emigrating, Li Lu studied at Columbia University, where he completed an unusual combination of degrees in economics, law, and business. This multidisciplinary background gave him a structured way of thinking about markets, incentives, and risk that still defines his investment approach. In 1997, shortly after graduating, he founded Himalaya Capital Management, a firm built around long-term ownership of a small number of high-quality businesses.
Li Lu is widely associated with Charlie Munger and Warren Buffett. Charlie Munger has publicly praised Li’s judgment and temperament and invested personal capital with Himalaya Capital early in its history. This relationship reinforced Li Lu’s commitment to value investing principles, particularly patience, concentration, and deep understanding of businesses rather than short-term market signals.
Despite managing billions of dollars, Li Lu keeps a low public profile. He is known for extensive primary research, including direct engagement with company management and long holding periods that often last many years. Outside investing, he is also active in philanthropy and community initiatives, reflecting a broader interest in long-term institutional and social outcomes.
Key facts that define Li Lu as an investor
- Founder-led discipline: Li Lu founded Himalaya Capital in 1997 and has retained direct control over portfolio construction, allowing his strategy to remain consistent across market cycles.
- Mentored by legends: His close relationship with Charlie Munger and long-standing alignment with Warren Buffett’s principles have shaped his focus on temperament, patience, and rational capital allocation.
- Extreme concentration: Himalaya Capital portfolios frequently contain fewer than ten holdings, reflecting confidence in deep research rather than diversification for its own sake.
- Low turnover mindset: Average holding periods often span many years, reinforcing a belief that compounding is more powerful than frequent trading.
- Management-first focus: Li Lu places significant weight on leadership integrity and capital allocation skill, often treating management quality as equally important as financial metrics.
This blend of lived experience, rigorous analytical training, and long-term conviction explains why Li Lu’s portfolio decisions favor high concentration, record equity exposure, and long stretches of inactivity rather than frequent trading or reactive adjustments.
Li Lu’s Top 9 Holdings: Q4 2025 Equity Portfolio
As of December 31, 2025, Himalaya Capital reported its highest equity exposure on record, based on the latest SEC Form 13F filing. Below is a clean breakdown of Li Lu’s Q4 2025 equity portfolio, aligned strictly with the figures shown in the images you provided.
Company | Ticker | Primary Industry | Market Value ($M) | Portfolio Weight |
|---|---|---|---|---|
GOOGL | Computer Programming & Data | 796.05 | 22.31% | |
GOOG | Computer Programming & Data | 769.22 | 21.55% | |
BAC | National Banks | 573.73 | 16.08% | |
PDD | Other Business Services | 522.50 | 14.64% | |
BRK.B | Casualty Insurance | 451.25 | 12.64% | |
EWBC | State Commercial Banks | 312.03 | 8.74% | |
OXY | Crude Oil & Gas | 60.30 | 1.69% | |
CROX | Rubber & Plastic Footwear | 53.72 | 1.51% | |
AAPL | Electronic Computers | 30.07 | 0.84% |
This Q4 2025 snapshot confirms several defining characteristics of Li Lu’s investment approach:
- Record equity allocation: The $3.57 billion portfolio value represents the largest equity exposure Himalaya Capital has reported to date.
- Highly concentrated structure: More than 87% of total capital is allocated to the top five holdings, reflecting deliberate concentration rather than broad diversification.
- Technology-heavy exposure: Alphabet, across its two share classes, accounts for over 43% of the portfolio, making it the single dominant driver of performance.
- Intentional position sizing: Each holding is selected, sized, and maintained with a multi-year horizon, emphasizing impact and conviction over diversification.
Despite record exposure, portfolio activity remains extremely low. Outside of a single new buy in Crocs and the exit from Sable Offshore earlier in the year, Q4 shows no additional trading, reinforcing Li Lu’s preference for letting capital compound rather than reallocating frequently.
Li Lu’s Q4 2025 Portfolio Changes
Himalaya Capital’s Q4 2025 SEC 13F filing shows limited but decisive activity, consistent with Li Lu’s long-term, high-conviction approach. The quarter included one new buy and one full exit, with no incremental adjustments elsewhere in the portfolio.
1. New Buy: Crocs (NASDAQ: CROX)
- Shares purchased: +100% (new position)
- Buy value: $52.54 million
- Price paid: $83.64
- Portfolio weight change: +1.51 percentage points
This purchase added Crocs (CROX) as a new holding and immediately lifted it to a meaningful position within the portfolio. While small relative to the top holdings, the move reflects selective capital deployment into a consumer brand with established cash generation and operating leverage. The absence of other new buys underscores that this was a deliberate addition rather than part of broader portfolio rotation.
2. Full Exit: Sable Offshore (NYSE: SOC)
- Share count change: −100% (sold out)
- Value sold: $12.68 million
- Price sold: $9.44
- Portfolio weight change: −0.73 percentage points
Himalaya Capital fully exited its position in Sable Offshore (SOC) during Q4. The position was relatively small, and the exit had minimal impact on overall portfolio structure. The decision aligns with Li Lu’s tendency to remove positions that no longer meet long-term conviction thresholds, rather than trimming incrementally.
Q4 2025 takeaway
Q4 2025 activity reinforces Li Lu’s disciplined style. One targeted new investment, one complete exit, and no broad reshuffling. Even as the portfolio reached record equity exposure, trading activity remained minimal, signaling continued confidence in existing core holdings rather than a shift in strategy.
Li Lu’s Q3 2025 Portfolio Recap: No Portfolio Changes
In the second quarter of 2025, Himalaya Capital made NO ADJUSMENTS to its equity portfolio. There were no new positions, no additions to existing holdings, and no trims or exits of any kind.
This complete lack of activity reflects Li Lu’s long-standing belief that meaningful investing is rooted in patience, not constant trading.
When he is confident in the long-term prospects of the businesses he owns, he prefers to let time and compounding work rather than chase short-term price movements. The unchanged Q3 Li Lu’s portfolio is a direct expression of his philosophy that inactivity can be the most rational decision when the market offers no opportunities that meet his standards.
Q2 2025 Changes in Detail: Li Lu’s Equity Portfolio
Himalaya Capital’s Q2 2025 SEC filing shows two significant changes: a major new buy and a notable trim.
1. New Buy: PDD Holdings (NASDAQ: PDD)
- Shares purchased: +100% (new position)
- Buy value: $483.47 million
- Price paid: $104.92
- Portfolio weight change: +17.93 percentage points
This bold purchase placed PDD Holdings (PDD) immediately as the second-largest holding in the portfolio at 17.93% of assets. The move signals confidence in the company’s growth trajectory in e-commerce and technology-enabled retail.
2. Reduction: Bank of America (NYSE: BAC)
- Share count change: -24.66%
- Value sold: $143.68 million
- Price sold: $42.07
- Portfolio weight change: -7.76 percentage points
Despite the trim, Bank of America (BAC) remains the largest holding at 18.36% of the portfolio, reflecting continued faith in U.S. banking but with slightly moderated exposure.
A Different Perspective
While the concentrated portfolio reflects high conviction, it also means results are heavily dependent on a small group of companies. This magnifies potential gains when picks perform well, but it also exposes the portfolio to sharper swings if one or two holdings face headwinds.
Some investors prefer broader diversification to reduce such risks, yet Li Lu chooses a different path. His philosophy is that real safety comes from knowing what you own, not from spreading capital thinly. This requires uncommon discipline, patience, and a tolerance for short-term volatility.
FAQ
Q: Why did Li Lu add PDD Holdings?
A: Li Lu has not disclosed a public rationale. Based on portfolio context, PDD Holdings aligns with his preference for scalable, technology-enabled businesses with long runways for compounding and strong competitive positioning in large consumer markets.
Q: Is Bank of America still a core position?
A: Yes. As of Q4 2025, Bank of America remains one of the largest holdings, representing 16.08% of the portfolio. Despite earlier trims, it continues to be a central exposure within Himalaya Capital.
Q: How risky is this portfolio?
A: The portfolio is highly concentrated, with nine holdings and over 85% of capital allocated to the top five positions. This structure increases sensitivity to company-specific outcomes and market cycles, resulting in higher volatility than broadly diversified portfolios.
Q: How long does Li Lu typically hold a stock?
A: Li Lu’s average holding period is 13 quarters, or just over three years. Several positions have been held for much longer, reinforcing a long-term, low-turnover investment approach.
Q: Has this strategy produced strong results?
A: Yes. As of Q4 2025, Himalaya Capital’s equity portfolio shows strong multi-year performance, supported by record-high equity exposure and sustained gains over the past five years. While results fluctuate year to year, long-term outcomes reflect the effectiveness of Li Lu’s concentrated, conviction-driven strategy.
