Founders
Episode 362 #362 Li Lu
Founders

Episode 362: #362 Li Lu

Founders

Episode 362

#362 Li Lu

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading Moving the mountain: My life in China from the Cultural Revolution to Tiananmen Square by Li Lu.

Charlie Munger said that Li Lu was the only outsider he ever trusted with his money.  Decades before Li Lu made Munger half a billion dollars, Li survived one of the most horrific childhoods imaginable:

Born into poverty, abandoned, hungry, beaten, surrounded by death. Persistent. Smart. Disciplined. Intensely curious. Obsessed with reading and learning. Determined to escape. This is a story you absolutely cannot miss. 

What I learned from reading Moving The Mountain: My life in China from the Cultural Revolution to Tiananmen Square by Li Lu.

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#362 Li Lu

Introduction

The book that I want to talk to you about today is, Moving the Mountain: My Life in China from the Cultural Revolution to Tiananmen Square, and it was written by Li Lu. Li Lu is the Founder of Himalaya Capital Management, which he's been running for about 30 years.

Li also had a 20-year investment partnership with Charlie Munger. I think Munger is the way I came to know about Li Lu because one time Munger was talking about the importance of patience, and he told a story where he made $400 million or -- he told the story of how he made about $400 million or $500 million from reading Barron's Magazine for 50 years.

And Munger said, "I read Barron's Magazine for 50 years. The entire time I only found one idea that I could act on, only one. I made $80 million on that idea basically risk-free. And then I took that $80 million, and I gave it to Li Lu, and he turned it into $400 million or $500 million." So Li Lu is known to have this cult-like following. He's known to have fantastic financial returns, but that is not what this book is about. Li wrote this book in his early 20s when he fled Communist China for the United States.

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