9 Stocks Charlie Munger's Money Manager Loves

Every market cycle creates a new group of instant experts who promise you the next hot trade, the next AI moonshot, or the one stock that will make you rich by Friday afternoon.

Meanwhile, some of the smartest investors in the world keep doing the same quiet, disciplined work they have always done.

Li Lu is one of those investors. He does not chase headlines, he does not run around predicting the economy, and he does not build portfolios stuffed with hundreds of positions just to look busy.

Instead, he owns a concentrated group of high quality businesses and lets time and compounding do the heavy lifting. For retail investors willing to think like owners instead of traders, there are some real lessons buried inside his portfolio.

Here’s how he’s been so successful – and how to copy his strategy.

Li Lu's background reads more like a history book than a Wall Street biography. Born in China, he rose to prominence during the Tiananmen Square movement before relocating to the United States and studying at Columbia University, the intellectual home of modern value investing. 

That experience shaped his entire philosophy.

He eventually founded Himalaya Capital, where he built a reputation for deep research, patience, and a willingness to hold great businesses for years. Along the way he formed a close relationship with Charlie Munger, who trusted him with a significant portion of his own capital. 

Through Munger, Li Lu became closely connected to Warren Buffett and the broader Berkshire Hathaway circle, and you can see that influence in almost every position he owns today.

Alphabet Inc.

Alphabet (NASDAQ:GOOG) remains one of the most dominant platforms in the world, sitting at the center of digital advertising, search, and cloud computing. Investors tend to focus on AI headlines, but the real story here is durable cash flow and a business model that continues to compound capital year after year. For retail investors, this is a classic long term core holding. It is not about chasing momentum. It is about owning a company with scale, pricing power, and enormous reinvestment opportunities.

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Apple Inc.

Apple (NASDAQ:AAPL) has evolved into a recurring revenue ecosystem built around devices, software, and services that keep customers locked into the platform. The company generates massive free cash flow and consistently returns capital through buybacks and dividends. This is the kind of high quality franchise that value investors hold through cycles because the underlying economics remain incredibly strong even when sentiment shifts.

Bank of America

Bank of America (NYSE:BAC) represents a large scale financial institution positioned to benefit from normalized interest rates and steady loan growth. Despite periodic fears about the banking sector, BAC continues to operate with strong capital levels and a diversified deposit base. For long-term investors, this is less about short-term trading and more about owning a franchise that can generate consistent earnings power across economic cycles.

East West Bancorp

East West (NASDAQ:EWBC) is one of those specialized regional banks that flies under the radar but delivers strong performance over time. With deep ties between U.S. and Asian commercial markets, the bank occupies a niche that few competitors can replicate. Its disciplined credit culture and focused strategy make it an appealing long term holding for investors who appreciate the quiet compounding power of well run financial institutions.

PDD Holdings Inc.

PDD (NASDAQ:PDD) reflects a willingness to invest in growth when the valuation and business model align. The company has built a powerful e-commerce ecosystem with expanding global reach and strong network effects. Yes, volatility around Chinese equities can be uncomfortable, but dominant digital platforms have historically created significant shareholder value when purchased with a long term mindset.

Occidental Petroleum

Occidental Petroleum (NYSE:OXY) provides exposure to the energy sector at a time when global demand for hydrocarbons remains resilient. The company has focused heavily on improving its balance sheet and generating free cash flow, which appeals to investors looking for disciplined capital allocation. Energy stocks can be cyclical, but OXY offers a way to participate in commodity upside while benefiting from operational efficiency.

Berkshire Hathaway

Owning Berkshire Hathaway (NYSE:BRK) is essentially owning a diversified collection of high quality businesses managed under a conservative, long term philosophy. The company combines insurance operations, infrastructure assets, and equity holdings into one vehicle that has historically compounded wealth over decades. For retail investors, BRK.B offers a simple way to align with the Buffett and Munger approach to capital allocation.

Crocs Inc.

The new position in Crocs (NASDAQ:CROX) stands out because it highlights a willingness to buy misunderstood consumer brands. Many investors still view CROX as a fad, but the company's strong margins, digital sales growth, and impressive cash generation tell a different story. When sentiment is negative but the fundamentals remain solid, that is often where value investors find opportunity.

BYD Co. Ltd. 

BYD (OTCPK:BYDDY) remains one of the most important investments associated with Li Lu's legacy. The company has evolved from a battery manufacturer into a vertically integrated electric vehicle and energy technology powerhouse. With ongoing discussions around potential spinoffs of semiconductor and advanced technology divisions, BYD continues to represent a long term growth story tied to electrification and global energy transformation.

What It All Means

Step back from the individual tickers and the broader lesson becomes clear. Li Lu's portfolio is not built around predictions about next quarter's GDP or the latest macro headline. It is built around owning durable businesses with strong balance sheets, capable management teams, and long run competitive advantages. The influence of Charlie Munger is unmistakable, but Li Lu has developed his own identity by blending classic value discipline with exposure to modern industries like AI infrastructure, electrification, and global digital commerce.

For investors, the takeaway is refreshingly simple. You do not need to chase every trend or trade every week to build wealth. Sometimes the best strategy is to buy a small group of exceptional businesses, ignore the noise, and allow compounding to do its work. It may not make for flashy headlines, but history suggests it is one of the most reliable paths to long term success.

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