Li Lu’s Latest Portfolio: Top Holdings, Biggest Changes & Strategy

Li Lu reported an equity portfolio valued at approximately $3.70 billion in the latest reported quarter, continuing the highly concentrated, long-term value investing approach that has defined Himalaya Capital Management.

Unlike broadly diversified investment managers, Li Lu focuses capital on a relatively small number of businesses where he believes the combination of business quality, competitive advantages, management, and long-term earnings potential provides an attractive investment opportunity.

The latest filing reflects this concentrated approach. The portfolio contains just eight reported holdings, with the largest four positions accounting for approximately 85% of total reported assets. The quarter also featured two significant additions, with Himalaya substantially increasing its stakes in PDD Holdings and Berkshire Hathaway.

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Portfolio Snapshot

• Total Portfolio Value: ~$3.70B
• Number of Holdings: 8
• Top 4 Weight: 85.09%
• Top 10 Weight: 100%

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Top Holdings & Weights

• Alphabet Inc Class A (GOOGL) — 24.55%
• Alphabet Inc Class C (GOOG) — 23.39%
• PDD Holdings Inc (PDD) — 22.17%
• Berkshire Hathaway Inc Class B (BRK.B) — 14.98%
• East West Bancorp Inc (EWBC) — 9.68%
• Crocs Inc (CROX) — 2.89%
• Tencent Music Entertainment (TME) — 1.49%
• Apple Inc (AAPL) — 0.86%

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Key Takeaways

Alphabet remains Li Lu’s dominant reported investment. Combined, the Class A and Class C positions account for approximately 47.94% of the portfolio, representing nearly half of Himalaya Capital’s reported U.S. equity assets. The two positions are valued at approximately $1.78 billion combined.

PDD Holdings was the standout purchase during the quarter. Himalaya increased its position by more than 6.15 million shares, lifting the holding to 10.76 million shares worth approximately $821 million. The position now represents 22.17% of the portfolio, making PDD the firm’s third-largest reported investment.

Berkshire Hathaway was another significant addition. Li Lu increased the position by approximately 210,569 shares, lifting the total holding to 1.11 million shares worth approximately $555 million. Berkshire now represents 14.98% of reported assets.

East West Bancorp remains another important holding at 9.68% of the portfolio, while Crocs, Tencent Music Entertainment, and Apple account for smaller positions.

Overall, the latest filing reflects Li Lu’s highly concentrated investment philosophy: allocating substantial capital to a limited number of businesses where he sees compelling long-term value rather than diversifying across a large number of companies.

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Biggest Changes Last Quarter

PDD Holdings Inc (PDD)

Shares increased by 6,153,119 (+133.53%)

Li Lu aggressively increased Himalaya Capital’s PDD Holdings position during the quarter, more than doubling the firm’s stake. The holding increased to 10.76 million shares, valued at approximately $821 million, and now represents 22.17% of reported assets.

Berkshire Hathaway Inc Class B (BRK.B)

Shares increased by 210,569 (+23.46%)

Himalaya Capital also expanded its Berkshire Hathaway position, increasing the holding to approximately 1.11 million shares. The stake is valued at roughly $555 million and represents 14.98% of the portfolio.

Bank of America Corp (BAC)

Position fully exited — 2,997,987 shares sold

Li Lu completely exited Himalaya Capital’s Bank of America position during the quarter. The previous holding was valued at approximately $146.2 million and represented 4.57% of the portfolio.

Occidental Petroleum Corp (OXY)

Position fully exited — 1,466,500 shares sold

Himalaya also eliminated its entire Occidental Petroleum position. The previous stake was valued at approximately $95.3 million and accounted for 2.98% of reported assets.

Other complete exits during the quarter included S&P Global (SPGI), H&R Block (HRB), Moody’s Corp (MCO), and MSCI Inc (MSCI), marking a notable reshaping of Li Lu’s already concentrated portfolio.