Li Lu was interviewed for 2 hours by Bruce Steinwald of Columbia Business School. This interview was streamed on YouTube on April 9, 2021. The 5 highlights were:
(1) Li Lu invests in the relatively few businesses he can identify that are growing, earning a high return on invested capital, and have a durable competitive advantage.
(2) Investors in those businesses that are growing, earning a high rate of return on invested capital (ROIC), and have a durable competitive advantage, will earn rates of return that will converge with ROIC over time.
(3) For investors to be successful over time, they must have the temperament to control their emotions and hold on to stocks or buy more when they are down 60-70%, and avoid following the crowd when they are rising rapidly. Greed and fear have resulted in sharp declines every 10 years throughout history. It is part of human nature.
(4) China currently has the best investment opportunities in the world.
(5) Li Lu has had dinner every Tuesday with Charlie Munger for 17 years (except for a hiatus during the pandemic).
David I Kass
Clinical Associate Professor, Department of Finance
Ph.D., Harvard University
Robert H. Smith School of Business
4412 Van Munching Hall
University of Maryland
College Park, MD 20742-1815
Phone: 301-405-9683
Email: [email protected] (link sends e-mail)
Dr. David Kass has published articles in corporate finance, industrial organization, and health economics. He currently teaches Advanced Financial Management and Business Finance, and is the Faculty Champion for the Accelerated Finance Fellows. Prior to joining the faculty of the Smith School in 2004, he held senior positions with the Federal Government (Federal Trade Commission, General Accounting Office, Department of Defense, and the Bureau of Economic Analysis). Dr. Kass has recently appeared on Bloomberg TV, CNBC, PBS Nightly Business Report, Maryland Public Television, Business News Network TV (Canada), Fox TV, American Public Media's Marketplace Radio, and WYPR Radio (Baltimore), and has been quoted on numerous occasions by Bloomberg News and The Wall Street Journal, where he has primarily discussed Warren Buffett and Berkshire Hathaway. He has also launched a Smith School “Warren Buffett” blog. Dr. Kass has accompanied MBA students on trips to Omaha for private meetings with Warren Buffett, and Finance Fellows to Berkshire Hathaway’s annual meetings. He is an officer of the Harvard Business School Club of Washington, DC, and is a member of the investment and budget committees of a local nonprofit organization. Dr. Kass received a Smith School “Top 15% Teaching Award” for the 2009-2010 academic year.
How much is are tech unicorn startups that recently went public really worth? Just like valuing a cryptocurrency, the “correct” price could be in the eye of the beholder.... Read More
2016 turned out to be one of the most memorable years in recent history for many reasons. The performance of equity hedge funds into the end of the year,... Read More
Please subscribe my channel A discussion and Q&A with Charlie Munger. In this discussion Charlie first talks about common sense and how it is not common.
Get The Full Series... Read More
Seth Klarman's Baupost Group was not able to translate the enthusiasm of equity markets into similar returns but the fund did well in Q1, according to Klarman's latest letter... Read More
Sometimes it pays to make friends in the financial industry. When Chesapeake Energy Corporation (NYSE:CHK) was acquisition hungry in the bullish natural gas period starting in 2007, the firm relied heavily... Read More
Paul Tudor Jones Failure Speech
Commencement Address To Graduating Class Of The Buckley School
June 10, 2009
When I was asked to give the commencement address to a graduating class of 9th... Read More
Bank of America Merrill Lynch’s Michael Hartnet, head of global investment strategy, is "in a deflationary state of mind," as the title of the latest research report implies while... Read More
Published on Mar 15, 2016
Investors don’t always think rationally when making financial decisions.
0:04do investors have realistic expectations about their investment return when
0:09franklin-templeton asked what annual return investors expect to... Read More
Most of the stock market remains in an earnings recession. As we wrote last week, public companies may be growing their accounting earnings, but economic earnings remain in decline.
Check... Read More
