Li Lu Sharing His Value Investing Insights
Li Lu Sharing His Value Investing Insights
Li Lu Sharing His Value Investing Insights
Investing Insights
<Big Font>Dear All,
On Value Investing
-Under 5% of all assets are run under value
investors, a real minority in the investment world.
Example: Timberland
-Start by giving a 5 second look at the business.
Timberland. The business is trading around clean
book value, consisting mostly of tangible liquid
assets, working capital, plus 100M in real estate.
Deployed capital is 200M with 100M return.
-Why no coverage?
-After all that, saw the stock was still trading low.
Decided he did not miss anything. The other 95%
may not have done enough research to see this or
have some kind of institutional imperative that
prevents them from owning.
Be a Learning Machine
-When an investment opportunity comes, you have
to seize it. Devote day and night so you can act
quickly. Do everything complete but do it fast. You
have to train yourself to jump on opportunity.
Investment Mistakes
-Most mistakes come from inaccurate or
incomplete information.
2. Is it a good business?