원문 보기
lelu is considered the Asian Warren Buffett his investment company Himalaya Capital investors returned a 30% average compounded yearly return from 1998 so how has lelu made incredible returns so consistently to help find out will first cover his early life and then learn about his value investing journey through his relationships with Warren Buffett and Charlie Munger although leelu's accomplishments are a inspiring he keeps quite a low profile in the investment World legendary investors such as Charlie Munger and Warren Buffett describe him as one of the top investors in the world with an average compounded return of 30% over decades it's no wonder that even the great investor Charlie Munger invested his money with leelu born in China his life was tough growing up through the Chinese Cultural Revolution his parents had to go to labor camps and he'd be moving to stay with various families despite this he studied economics at Nanjing University and then moved to Columbia University in the United States he found found the language and culture challenging when he first arrived in the US however lelu was determined and earned 3 degrees simultaneously in economics business and law which is incredible as a poor student he asked his friends how he could make money and they sent him a flyer for an event he assumed that because the event specified a buffet he'd receive a free buffet meal at worst however when he arrived he realized there was no Buffet instead it was a man named Buffett it's fair to say he got very lucky by accidentally attending an event by Warren Buffett even more so as Warren Buffett opened his mind and he would try to read everything he wrote he bought his first stock a year later and invested through his student years inspired by Buffett's speech lelu followed value investing principles which put him on a journey of continuous learning and great wealth he also learned investing principles from Benjamin Graham Warren Buffett's teacher leelu founded Himalaya Capital man agement in 1998 with the knowledge and wealth he'd gained his early years as an investor were tough mainly because of the Asian financial crisis as he lost 19% in his first year despite this leelu's belief in his ability to find undervalued stock and his skill with risk management meant he would soon overcome the setback following the setback he said in my view the biggest investment risk is not the volatility of prices but whether you will suffer a permanent loss of capital not only is the mere drop in stock prices not risk it is an opportunity where else do you look for cheap stocks hey before we continue please consider subscribing and clicking that like button because it really does help one of leelu's best investments was in Russian oil stocks during the 1990s the fall of the Soviet Union meant that stocks were made to trade at huge discounts to their actual value lelu quickly recognized these opportunities as the major assets on the Russian company's balance sheet were significantly undervalued for example his investment in LC oil a Russian government entity resulted in massive returns as the stock price increased tfold by 1998 this example shows leelu's ability to find Value opportunities during periods of crisis when many others are fearful early on leelu's investment philosophy focused on buying lowcost value stocks like what Warren Buffett did early in his career he believes investors can profit particularly during periods of high uncertainty this approach is is often called cigar butt investing which is when you buy a low priced weak company and as soon as it increases a little in price you quickly sell it for a profit essentially the company will have one last slight price increase before going back down again cigar butt investing is different from value investing for long-term gains a popular formula many investors use to help identify cigar butt stocks is the net current asset value formula shown here Benjamin Graham developed the formula because he thought comparing its outcome with a stock price could help investors find undervalued companies okay enough of the long formulas I'm off to smoke cigar butts on Miami Beach to relax my brain says newbie Nick okay Nick but if you're confused about the formula I don't think smoking cigar butts will help another excellent Lelo investment was in Timberland a shoe manufacturing and apparel company at the time the company was in trouble due to lawsuits however lelu saw the value in the brand and strong underlying fundamentals the company traded at what Le L called clean Book value with many tangible assets and healthy working capital he quickly seized this opportunity seeing the stock price at a considerable discount within only 2 years the stock price increased by over 700% boosted by Massive annual earnings growth of 30% leelu had around 20% of his portfolio invested in the stock and he achieved an incredible return with relatively low risk damn these Cuban cigar butts in Miami are so good you guys should join me says newbie Nick but we're not interested in your cigar butts Nick lelu and Munger share great mutual respect and have worked together on many Investments Munger has even invested some of his money in leelu's fund highlighting his trust and his unique ability Munger once said about lelu he's partly a Chinese Warren Buffett that really helps partly because he's fishing in China not in this overarched overpopulated highly competitive American Market lelu emphasizes the need to go deeper than most other analysts when understanding a company's fundamentals he's committed to comprehensive Research into financial statements competitive advantages and analyzing management quality as leelu advanced in his career his investment Capital began to increase and he started to transition his approach to longer term value investing he retains Investments over extended periods to allow the true worth of a firm to be realized over time a patient long-term approach aligns with Warren Buffett's famous quote our favorite holding period is forever lelu aims to receive the full value potential of his Investments by staying disciplined and avoiding the temptation of short-term trades he also places High importance on risk management Because he believes in protecting wealth by thoroughly examining the downside risk of each investment similarly to Buffett leelu had to adapt from buying cheap cigar butt stocks to larger and larger companies as his Capital grew I've learned a lot from leelu and I hope you have too in the comments let me know what part of lelu story you found to be the most interesting I'll be sure to reply consider subscribing and clicking the like button because it helps until next time
Comments 0