In the year In the early 2000s, Berkshire Hathaway Inc. Vice Chairman Charlie Munger made a bold but calculated financial move. He entrusted $88 million of his family’s fortune to Li Lu, who is often referred to as China’s Warren Buffett.
This bold investment, despite its share of risk, was not only safe but also yielded high growth. Now it is estimated at 400 million dollars.
“We’ve made good returns for a long, long time.” to tell he said. “The $88 million has quadrupled or quintupled.”
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theirs First meeting Shortly after graduating from Lee College, it took place at a mutual friend’s apartment in Los Angeles. At first, instead of being fully immersed in the conversation, Munger found himself somewhat taken aback by the idea. Despite this initial impression, their conversation was filled with Munger’s brief but insightful words of wisdom.
Seven years later, it was during Thanksgiving lunch in 2003 that Munger and Lee had what they called “a long heart-to-heart conversation.” Impressed by Lee’s investment skills, Munger backed Lee with personal funds when he launched a new fund in 2004.
Lee’s investment track record boasts significant achievements including Kweichow MoutaiIt has risen in value over the past two decades and is one of China’s largest listed liquor brands. It is also called the national drink of China.
Despite being in the middle of the pandemic, Kwechow Mutai has had an amazing year. In 2020, he Stock The Shanghai stock market rose 70 percent. The partly state-owned and partly publicly traded company is China’s most valuable business outside of the technology sector. It is worth more than the country’s four biggest banks.
Munger praised Lin’s wise decision, saying, “It was really cheap, four to five times the income, and Li Lu backed the car, bought everything he could and killed it.”
Lee’s investment strategy relies on his ability to identify undervalued prospects. This approach highlights that sometimes smaller investments hold the greatest potential for higher growth. Lee’s ability to recognize opportunities when companies are undervalued has allowed him to unlock exceptional value over time.
Lee’s most notable investment is in BYD Co., a maker of battery and electric vehicles. Ltd. It’s in. Lee originally invested in BYD in 2011.
Munger acknowledged the impressive success and described the early investment in BYD as a “miracle”. as if CNBC interview, he BED Tesla Inc. in China. He said, this statement contradicts Buffett’s views on the electric vehicle industry. Buffett expressed concern about excessive competition.
Munger placed great trust in Lee, considering him the only outsider he trusted financially, but predicted that Lee would eventually play a major role at Berkshire Hathaway.
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This column Charlie Munger turns his family’s fortune into half a billion dollars to China’s Warren Buffett – ‘We’ve made unholy returns for a long, long time’ It appeared at first Benzinga.com
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