I will make a summary video soon, even if there is so much knowledge that this might be impossible to summarize. Anyway, this for now will sure help: 4:20 How did your investment philosophy change over the last 28 years? It didn’t 12:20 What kind of businesses to look for, characteristics? (above average returns on capital) 15:45 MOAT - Economies of scale, duration and what other elements? (Allocation of capital) 21:10 Is size a key factor for having a moat? NO 23:30 In what other ways do you do things differently from most other value investors? 25:50 What is long-term ownership and how do you buy more when stocks crash 50%? 26:30 The market today? 28:10 The role of management 29:20 Specific things you learned about management over time? 35:58 Stable companies in crises 38:00 Better to be a generalist or specialist 40:19 Evolution of markets - Asian and Chinese role in the future 41:32 Reliability of Chinese data 45:29 Service sector in China 47:29 Where to find the best value investing opportunities in China? 51:39 Development of Chinese financial markets 55:08 Investing in local services in China 58:28 New trends in investing - bitcoin, 5G, AI 1:02:58 Opportunities in new technologies 1:03:58 Renewable energy, BYD, Tesla 1:07:06 How to start value investing 3 key factors 1:13:56 What would you have done differently in your career 1:22:10 Discrimination of Asian Americans
@@loveanimals-0197 I actually loved it, so much insight, but perhaps it is hidden and should be elaborated more on, surely not methodical :-)) Will do!
The student becomes the teacher. Li Lu exalts the respect of a master of his craft: profoundly knowledgeable, humble, passionate about what he does, continuously learning, emphasising principles over particulars.
Not sure about the student becoming a teacher. Bruce caught him generalizing about semiconductors and gave him a quick history lesson, including the year they were invented, lol.
@@Angel-bf5oy Not true. He was referring to when semiconductors became integrated en masse and affected the new "mega trend" of technology as part of the larger discussion. Mr. Greenwald interrupted him to sort of point out a fact, which was the specific date of the first semiconductor was irrelevant to the discussion.
The more I listen to him, the more I realize that I have the exact same approach to investing. He is obviously much better informed and experienced, but I agree whole heartedly. I don't care about macro environments when it comes to investing for the long term. A good business will see bad times and good times and still be going strong.
This is the second time I've watched. Li Lu's comments about Chinese government intervention into their capitalist entities are interesting and prophetic. We westerners need to bust our paradigms. Chinese companies are going to do fine, But they are going to do it differently. And that's not necessarily a bad thing. Long BABA by the way..
" China is becoming the largest growing consumer market in the world and that is likely to continue for many many more decades"- The insights into China are most valuable.
Academic knowledge locks your mind but when the mind transcends to study reality the mind can do wonders. Therefore let us not limit ourself by researching for materials only in academic papers but let us research nature itself then we will be in sync with reality.
Investing effectively entails a greater deal of skill and perseverance, ultimately the best and only productive option I chose was to contract an expert funds manager. With his professional assistance I’ve been on a long profit run and steady cash inflow since then
@@Axelk8 He goes by the name Ronald B. Furey, he provides an investment management service where he handles my trading analysis and executed trades with his superior expertise giving him a much better standpoint and chance of earning colossal profit returns. This way it creates room for a more efficient and profitable trading process
Actually, I think the market already priced in the bulk of the news. I heard the rumor of over 2 billion fine literally 1 week ago as an individual investor...
My take is that the student (Li Lu) has become the master, and Mr. Greenwald may be chafing a little, perhaps subconsiously, at how far he has been surpassed by his former protege. The ego is a powerful force in human beings after all. Just my take.
I think you miss understand. As a professor, Professor Greenwald always try to show same examples to students after theory, which would be much more practical and beneficial for students(as Ben gram did); while as an investor, lilu does not want other people know what he is holding and miss leading people. Both of them are wonderful person and contribute a lot for value investment. I highly respect both of them and learn a lot from their communication!
thank you, but sorry to see that the hosts thought it's more important to "stay on time" and cut Li off. Classic failing habits of f University hour-class-based education.
1:16 You have to really know what you're doing to make money in the Chinese financial sector (does Jack Ma really know what he's doing? Greenwald missed the opportunity to ask)
Jack did the "clever thing" of trying to get investors who had government ties into the ant financial IPO ship, and he thought he could get away with that despite the systematic risk of ant financial. It did not work.
Ant financial was giving out micro-loans to 20 year olds at 30-40% interest rates, without any credit checks or collateral, basically like a payday loan service, but using borrowed money at extremely low rates from the big 5 Chinese banks to fund that. In the agreement, the banks would hold the bag if these kids couldn't pay back and ant would get the profits. Do you see a problem there? Especially with the reach of ant's app that has like 7-8 hundred millions users?
@@jayzee316 Well I guess that illustrates Lu's point, that you could borrow at 40% via an app. But then the gov't closed the financial services market back up. So you have to pick one. It's either opening or closing.
@@johnhhaskell opening = predatory loans like we have here? nah man, I believe there's a middle ground where you can have open markets for banking/finance/etc, but you don't give 20 yr old kids these loans they can't get out from. What we have is not the best system, and the kids today will tell you that under their crippling debt.
He's referring to the fact that foreign financial firms are now allowed to operate FULLY OWNED asset management subsidiaries in China since last year I believe, which is a huge deal. Before that you have to operate as a joint venture with a Chinese company with no more than 51% stake.
Wrong buddy, mainly people sell their stocks because they think it'll do worse than what the buyer thinks, but another group of people sell out for all sorts of reasons: death, divorce, big bills, financial hardship etc. better go back to the drawing board.
Maybe why I'm very unique and uniqueness kind of human beings because I don't have parents and family's members of mines because I'm only one by myself alone individual for 22 or 23 years. Lives and living alone in my Homelands country9 in Philippines.
I refuse to believe that Li Lu is an above average investor. A disappointing interview. Li Lu always talks in circles, and never answers questions in a straight forward way. He dissembles and waffles with a scholarly air. It’s telling that he so resolutely and consistently refuses to talk in granular terms about businesses.
The game is meant to be sold and not to be told. The reality is value investing is not that difficult intellectually, but requires a special temperament in which you are clearly lacking. Your ill conceived comments allude to your peasantry. Do you think Charlie Munger had dinner on a weekly basis with an average anybody? Keep watching Jim Cramer.
The measure of whether he is an above average investor has nothing to do with this interview. If his investing returns are above average, over a significant period of time, then he's an above average investor. It's as simple as that.
@@jimgillespie7039 "The reality is value investing is not that difficult intellectually." No experienced, thoughtful professional would ever say something this lazy. Good luck.
@@jayzee316 you're saying that total consumption is up, which I don't dispute. I'm asking about consumption as a % of GDP which is not something that you see before your eyes. twitter.com/michaelxpettis/status/1351058972007084033
@@johnhhaskell I think you have to look even finer, i.e. consumption as per demographic, I'm fairly certain its up (even as a % of GDP) in a number of cities, or in the middle/upper middle class, in women aged 20-40, etc. But China is so big you can always find counter-data, and you don't turn from export to a consumer economy over night, or over a year or two, it takes time. I'm not saying it's a sure thing they'll succeed, but let's give it time and see.
It doesn't matter who I am , who you are, who they are and who we are because this is not based on your gender identity., because I'm a trans and transgender person to transforms into a real human beings and real human based on my human behavior issue because I disciplines myself with a good manners ,good value and values and good rights conduct plus the gifts to respect treated equals and equality to respecting to each other's it doesn't matter who you are and who we are if you rich or poor learned to balanced and balancing to respects the people's around the world.
Watched this vdo many times and still interested to warch again. Both of them are xclnt teacher to a novice like me. @ Indrajit Mondal ( Assistant Teacher, India)
He doesn't need to spoonfeed you. He presented so much wisdom in this talk, unfortunately you weren't listening. In the end, you need to do the work and understand these businesses to make your own decisions.
@@katariakapital intelligent response. Anyway, there are plenty of "financial gurus" who will give you stock advice. PS. there are some very important psychological reasons not to talk openly about your investments.
@@Concojone5 I would say he's more focused on his Inner Scorecard. If you understand psychology (which he certainly does being around Munger), there are very important reasons not to talk about your investments publicly. I find Nicholas Sleep describes the situation well in one of his Nomad Letters. Guy Spier has talked about this too.
Man, I really want to listen to and enjoy this video but Li Lu clearing his throat loudly literally every 5 seconds makes it completely unlistenable to me :/
Because I'm not greed and greedy in money's unlikely of those people in a numbers of groups members in a team's Ally's groups in makings money's and scams activities in criminals activities in crimes like a predators! I'm the ones I feeds and feedings of those young people which friends of mines and relatives of mines is so very greedy and greedy for the sake of money!!
I will make a summary video soon, even if there is so much knowledge that this might be impossible to summarize. Anyway, this for now will sure help:
4:20 How did your investment philosophy change over the last 28 years? It didn’t
12:20 What kind of businesses to look for, characteristics? (above average returns on capital)
15:45 MOAT - Economies of scale, duration and what other elements? (Allocation of capital)
21:10 Is size a key factor for having a moat? NO
23:30 In what other ways do you do things differently from most other value investors?
25:50 What is long-term ownership and how do you buy more when stocks crash 50%?
26:30 The market today?
28:10 The role of management
29:20 Specific things you learned about management over time?
35:58 Stable companies in crises
38:00 Better to be a generalist or specialist
40:19 Evolution of markets - Asian and Chinese role in the future
41:32 Reliability of Chinese data
45:29 Service sector in China
47:29 Where to find the best value investing opportunities in China?
51:39 Development of Chinese financial markets
55:08 Investing in local services in China
58:28 New trends in investing - bitcoin, 5G, AI
1:02:58 Opportunities in new technologies
1:03:58 Renewable energy, BYD, Tesla
1:07:06 How to start value investing 3 key factors
1:13:56 What would you have done differently in your career
1:22:10 Discrimination of Asian Americans
bravo！
Thank you brother!!
THIS WAS SO BORING. Man, it's almost like Li Lu thought let me be as boring as possible and get out of here. Jeez. Nothing new. Same old.
@@loveanimals-0197 professor Greenwood really tried his best though lol.
@@loveanimals-0197 I actually loved it, so much insight, but perhaps it is hidden and should be elaborated more on, surely not methodical :-)) Will do!
"Principle is simple. Practice is hard." Great point!
What have we done to deserve this content for free? Amazing!
The student becomes the teacher. Li Lu exalts the respect of a master of his craft: profoundly knowledgeable, humble, passionate about what he does, continuously learning, emphasising principles over particulars.
THIS WAS SO BORING. Man, it's almost like Li Lu thought let me be as boring as possible and get out of here. Jeez. Nothing new. Same old.
Not sure about the student becoming a teacher. Bruce caught him generalizing about semiconductors and gave him a quick history lesson, including the year they were invented, lol.
@@Angel-bf5oy That's a very good point. The roles are interchangeable. Li Lu being the teacher here shows how Bruce continues learning.
I have something big for you
WC
+ 1 , = 8 , = 0 , = 5 , = 6 , = 7 , = 8, = 0 , = 8 , = 4 , = 0 ,
@@Angel-bf5oy Not true. He was referring to when semiconductors became integrated en masse and affected the new "mega trend" of technology as part of the larger discussion. Mr. Greenwald interrupted him to sort of point out a fact, which was the specific date of the first semiconductor was irrelevant to the discussion.
Great Interview! Thanks Mr. Li Lu, Professor Greenwald and Columbia BS for this opportunity to access high quality knowlegde.
The more I listen to him, the more I realize that I have the exact same approach to investing. He is obviously much better informed and experienced, but I agree whole heartedly. I don't care about macro environments when it comes to investing for the long term. A good business will see bad times and good times and still be going strong.
Li lu really doesn’t want to give out what he knows and it shows here.
Based on recent event( DIDI IPO) They should make another conférences to include the impact of Chinese government on foreign investment!
Lilu's interview and lecture is always one of the best investment source. Thank you.
This is a great interview. As a value investor myself, I think it is condensed version of some of the best value investing books .... outstanding!
Both are legends in the field of value investing... there r so much to learn from them..... happy to see them together........
Thank you CBS China team for organising this event and sharing it on TH-cam. Truly valuable.
This is the second time I've watched. Li Lu's comments about Chinese government intervention into their capitalist entities are interesting and prophetic. We westerners need to bust our paradigms. Chinese companies are going to do fine, But they are going to do it differently. And that's not necessarily a bad thing. Long BABA by the way..
" China is becoming the largest growing consumer market in the world and that is likely to continue for many many more decades"- The insights into China are most valuable.
Video start at @24:00
This seems false
@@thenon-gaapbillionaire3306 They edited the video
Appreciate this interview and thank you for organizing!!!
@ Sven Carlin thanks for the great work.
Amazing, thank you for sharing this gem.
Wow *arghhh* very *arrghhh* good *arrghhh* video *arghhhh*
Good to hear from LiLu
I have something big for you
WC
+ 1 , = 8 , = 0 , = 5 , = 6 , = 7 , = 8, = 0 , = 8 , = 4 , = 0 ,
Thank you for the quality video
Academic knowledge locks your mind but when the mind transcends to study reality the mind can do wonders. Therefore let us not limit ourself by researching for materials only in academic papers but let us research nature itself then we will be in sync with reality.
Great interview. Thanks.
Investing effectively entails a greater deal of skill and perseverance, ultimately the best and only productive option I chose was to contract an expert funds manager. With his professional assistance I’ve been on a long profit run and steady cash inflow since then
I can’t say I don’t agree to that system because it works and I’ve heard of a few who benefited greatly by investing through an expert
How do you go about your trades with your fund manager? I could use his help in my struggle with series of reoccurring losses
@@Axelk8 He goes by the name Ronald B. Furey, he provides an investment management service where he handles my trading analysis and executed trades with his superior expertise giving him a much better standpoint and chance of earning colossal profit returns. This way it creates room for a more efficient and profitable trading process
@@Axelk8 If you might require his assistance reach out to him on what s app
+ 1 3 (8 5 4) 3 7 1 - 1 5 8
12:26 Checklist
Fantastic!
Can someone buy Li Lu a good mic. For god's sake. All of his recordings have poor audio quality.
I want to know if he talked to Charlie Munger about his Alibaba purchase.
It’s very likely. They talk weekly. They seem very close
He’s also very bullish on China
Actually, I think the market already priced in the bulk of the news. I heard the rumor of over 2 billion fine literally 1 week ago as an individual investor...
@@alexl.3137 where from alex? the files were published on april 6 and released yesterday.
Li Lu sold Alibaba in Q2 2020, and bought PDD in Q4 2020, so i'm curious how Charlie and Lu's theses differ
59:00 Greenwald asks a very good and specific question which Lu refuses to answer
I have something big for you
WC
+ 1 , = 8 , = 0 , = 5 , = 6 , = 7 , = 8, = 0 , = 8 , = 4 , = 0 ,
I love Li Lu. Please send that man some cough drops and a glass of water. :-)
what companies does Li Lu own outside the US?
Postal Savings Bank of China. It is his largest position. He owns approx 6.4 % of this company
How do I contact Li Lu?
Do you feel the tension between Greenwald and Li Lu? What happened ?
My take is that the student (Li Lu) has become the master, and Mr. Greenwald may be chafing a little, perhaps subconsiously, at how far he has been surpassed by his former protege. The ego is a powerful force in human beings after all. Just my take.
I think you miss understand. As a professor, Professor Greenwald always try to show same examples to students after theory, which would be much more practical and beneficial for students(as Ben gram did); while as an investor, lilu does not want other people know what he is holding and miss leading people.
Both of them are wonderful person and contribute a lot for value investment.
I highly respect both of them and learn a lot from their communication!
Great discussion!
because this is the words of "WHO WE ARE" people's around the world.💙💙💙💙
I wish and I hope to stop hurt's and violations and discrimination in Asian American in hates crimes around the world
thank you, but sorry to see that the hosts thought it's more important to "stay on time" and cut Li off. Classic failing habits of f University hour-class-based education.
Lunch is more important
Would have been interested to get his thoughts on Bitcoin given what Charlie has said about it. 😂
What is this aah uuhm all the time...?
川貝枇杷膏 would help Li Lu with his throat. 😂😂
Li Lu's throat is fine. Its the other guy, Bruce Greenwald, who has an issue with his throat. He should mute himself when he isn't speaking.
Take a sip every time he clears his throat
"in a certain sense" [clears throat]
It's distracting me, too.
Li Lu hinting that Apple poised to disrupt auto industry?
He did buy Apple shares so it could mean something.
@@Murciful yes but he bought in q4 2020 after a big run,I don't agree the move..
🙏
1:16 You have to really know what you're doing to make money in the Chinese financial sector (does Jack Ma really know what he's doing? Greenwald missed the opportunity to ask)
Jack did the "clever thing" of trying to get investors who had government ties into the ant financial IPO ship, and he thought he could get away with that despite the systematic risk of ant financial. It did not work.
Jack Ma wanted to convert China into a Capitalism country.
Its a pitty that Li Lu english is difficult to understand
Why good governance and Chinese culture are never mention during the analysis of Chinese companies !?
37:00 no secrets revealed
1:10 Chinese government is opening up the financial sector in a way it hasn't before. [Ant Financial was not asked to comment]
Ant financial was giving out micro-loans to 20 year olds at 30-40% interest rates, without any credit checks or collateral, basically like a payday loan service, but using borrowed money at extremely low rates from the big 5 Chinese banks to fund that. In the agreement, the banks would hold the bag if these kids couldn't pay back and ant would get the profits. Do you see a problem there? Especially with the reach of ant's app that has like 7-8 hundred millions users?
@@jayzee316 Well I guess that illustrates Lu's point, that you could borrow at 40% via an app. But then the gov't closed the financial services market back up. So you have to pick one. It's either opening or closing.
@@johnhhaskell opening = predatory loans like we have here? nah man, I believe there's a middle ground where you can have open markets for banking/finance/etc, but you don't give 20 yr old kids these loans they can't get out from. What we have is not the best system, and the kids today will tell you that under their crippling debt.
He's referring to the fact that foreign financial firms are now allowed to operate FULLY OWNED asset management subsidiaries in China since last year I believe, which is a huge deal. Before that you have to operate as a joint venture with a Chinese company with no more than 51% stake.
@@johnhhaskell I have something big for you
WC
+ 1 , = 8 , = 0 , = 5 , = 6 , = 7 , = 8, = 0 , = 8 , = 4 , = 0 ,
Hi sir just try to drink 2 spoons of vinegars tnx.
get my boy a losange!
Wrong buddy, mainly people sell their stocks because they think it'll do worse than what the buyer thinks, but another group of people sell out for all sorts of reasons: death, divorce, big bills, financial hardship etc. better go back to the drawing board.
Maybe why I'm very unique and uniqueness kind of human beings because I don't have parents and family's members of mines because I'm only one by myself alone individual for 22 or 23 years. Lives and living alone in my Homelands country9 in Philippines.
Well scripted for me 😍
1:19 Chinese banks will be much more profitable than US banks (ICBC is flat since 2006)
I refuse to believe that Li Lu is an above average investor. A disappointing interview. Li Lu always talks in circles, and never answers questions in a straight forward way. He dissembles and waffles with a scholarly air. It’s telling that he so resolutely and consistently refuses to talk in granular terms about businesses.
He may or may not be above average, but one certain thing is that he is not sharing his knowledge. :)
The game is meant to be sold and not to be told. The reality is value investing is not that difficult intellectually, but requires a special temperament in which you are clearly lacking. Your ill conceived comments allude to your peasantry. Do you think Charlie Munger had dinner on a weekly basis with an average anybody? Keep watching Jim Cramer.
The measure of whether he is an above average investor has nothing to do with this interview. If his investing returns are above average, over a significant period of time, then he's an above average investor. It's as simple as that.
@@jimgillespie7039 "The reality is value investing is not that difficult intellectually." No experienced, thoughtful professional would ever say something this lazy. Good luck.
1:06 Lu tries to blow some smoke about China's retail sector and how the economy is shifting towards consumption but Greenwald is not having it
it is, if you're in china you'd see it in front of your eyes.
@@jayzee316 you're saying that total consumption is up, which I don't dispute. I'm asking about consumption as a % of GDP which is not something that you see before your eyes.
twitter.com/michaelxpettis/status/1351058972007084033
@@johnhhaskell I think you have to look even finer, i.e. consumption as per demographic, I'm fairly certain its up (even as a % of GDP) in a number of cities, or in the middle/upper middle class, in women aged 20-40, etc. But China is so big you can always find counter-data, and you don't turn from export to a consumer economy over night, or over a year or two, it takes time. I'm not saying it's a sure thing they'll succeed, but let's give it time and see.
It doesn't matter who I am , who you are, who they are and who we are because this is not based on your gender identity., because I'm a trans and transgender person to transforms into a real human beings and real human based on my human behavior issue because I disciplines myself with a good manners ,good value and values and good rights conduct plus the gifts to respect treated equals and equality to respecting to each other's it doesn't matter who you are and who we are if you rich or poor learned to balanced and balancing to respects the people's around the world.
does he smokes?
Reliance industries from India will rule renewable space.
Plus bankruptcy of those peoples
Watched this vdo many times and still interested to warch again. Both of them are xclnt teacher to a novice like me. @ Indrajit Mondal ( Assistant Teacher, India)
Too bad Li Lu did not get into specifics. So many generalities made this talk close to useless.
He doesn't need to spoonfeed you. He presented so much wisdom in this talk, unfortunately you weren't listening. In the end, you need to do the work and understand these businesses to make your own decisions.
@@JeffLaRochelle Balderdash
@@katariakapital intelligent response. Anyway, there are plenty of "financial gurus" who will give you stock advice.
PS. there are some very important psychological reasons not to talk openly about your investments.
I find he's always like that. It's a pity. Perhaps he doesn't want to give his edge away.
@@Concojone5 I would say he's more focused on his Inner Scorecard. If you understand psychology (which he certainly does being around Munger), there are very important reasons not to talk about your investments publicly.
I find Nicholas Sleep describes the situation well in one of his Nomad Letters. Guy Spier has talked about this too.
baba
The host is really aggressive and opinionated. Not really listening to the guest.
THIS WAS SO BORING. Man, it's almost like Li Lu thought let me be as boring as possible and get out of here. Jeez. Nothing new. Same old.
Man, I really want to listen to and enjoy this video but Li Lu clearing his throat loudly literally every 5 seconds makes it completely unlistenable to me :/
Because I'm pretty sure and surely they will find and found the next victim's after this .
In college level sir
What a disappointing interview :/ Haven't learned anything new. Not sure why Li Lu starts laughing on a serious question repeatedly?
Because I'm not greed and greedy in money's unlikely of those people in a numbers of groups members in a team's Ally's groups in makings money's and scams activities in criminals activities in crimes like a predators! I'm the ones I feeds and feedings of those young people which friends of mines and relatives of mines is so very greedy and greedy for the sake of money!!
The man is full of himself. From 2025-2035 he would suffer great losses from his hubris.
My goodness. The guy is struggling with a frog 🐸 in the throat the entire interview. It's so distracting hearing him clear his throat every 5 seconds.
What an annoying public speaker he is with constantly clearing his throat
He was likely unwell. But he didn't skip the interview.
@@gkbchua73 he should have had water
@@chucksirron6346 Every interview I’ve heard of him you hear that. You have to ignore that and try to listen to what he is saying as much as possible.
i would rather hear him clearing his throat in an interview then not hear of him at all
He is a heavy smoker, apparently
53 minutes in, I've learned nothing
I had a hard time listening to him drone on while constantly clearing his throat. Did he ever talk about recent events with Alibaba?
You sound like a peasant.
@@jimgillespie7039 You sound like a 五毛