Li Lu Portfolio Analysis (December 31, 2021)

Famous superinvestor, Li Lu, revealed in a recent regulatory filing his newest positions.  In Li Lu portfolio 2021 analysis, we will go into more detail about top 5 stocks this superinvestor had as of December 31, 2021.

Lu manages his investments via his fund, Himalaya Capital Management, which holds about $2.7 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in Li Lu’s Q4 portfolio include Micron Technology Inc, Bk Of America Corp, Meta Platforms Inc, Berkshire Hathaway Inc and Alphabet Inc. In addition to others mentioned in detail below.

We used the Q4 portfolio of Li Lu’s Himalaya Capital Management to select his top 5 value stocks. We ranked the securities according to Lu’s stake value in each holding.

Summary

• Li Lu’s top 5 securities make up 95.0% of the entire portfolio.
• Himalaya Capital Management owns position in 6 holdings, managing approximately $2.7 billion.
• Micron Technology Inc, Lu’s largest holding, makes up 40.1% of the total portfolio.

Micron Technology Inc (MU)

Himalaya Capital Management’s stake value: $1.1 Billion

Percentage of Himalaya Capital Management’s 13F Portfolio: 40.1%

Micron Technology Inc. does business in Semiconductor and Related Device Manufacturing industry. Current CEO is Sanjay Mehrotra.

As of February 16, 2022 Micron Technology Inc had a market cap of $107.902 Million. Analysts predicted 1 year target price of $110.66 that exceeds the current price of $94.44 for 17.2%. Trailing twelve months P/E ratio is currently 14.91 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Micron Technology Inc generated significant amount of revenue, $27705 million in 2021, surging by 29.3% in comparison to 2020 when it was $21435 million. Net income surged according to the latest fillings, jumping in 2021 by around 118.1% adding up to total of $5861.0 million. On top of that, the net profit margin, which was at 21.2%, has dropped compared to previous operations.

MU is backed by more than 40 years of technology leadership, its memory and storage solutions enable disruptive trends, including artificial intelligence, 5G, machine learning, and autonomous vehicles, in key market segments like mobile, industrial, graphics, automotive, and networking.

Bk Of America Corp (BAC)

Himalaya Capital Management’s stake value: $649.0 Million

Percentage of Himalaya Capital Management’s 13F Portfolio: 24.4%

Bank Of America Corp. does business in Commercial Banking industry, which is Finance and Insurance sector and has 213000 employees. Current CEO is Brian Moynihan.

As of February 16, 2022 Bk Of America Corp had a market cap of $386.282 Million. Analysts predicted 1 year target price of $51.73 that exceeds the current price of $47.44 for 9.0%. Trailing twelve months P/E ratio is currently 13.39 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Bk Of America Corp generated significant amount of revenue, $93707 million in 2021, surging by 26.3% in comparison to 2020 when it was $74208 million. Net income surged according to the latest fillings, jumping in 2021 by around 78.7% adding up to total of $31978.0 million. Besides, profit margin, which levels at 34.1%, shows an improvement, comparing to the previous years.

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.

Meta Platforms Inc (FB)

Himalaya Capital Management’s stake value: $294.7 Million

Percentage of Himalaya Capital Management’s 13F Portfolio: 11.1%

Meta Platforms Inc does business in Information sector and has 58604 employees. Current CEO is Mark Zuckerberg.

As of February 16, 2022 Meta Platforms Inc had a market cap of $586.823 Million. Analysts predicted 1 year target price of $335.58 that exceeds the current price of $212.41 for 58.0%. Trailing twelve months P/E ratio is currently 15.66 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Meta Platforms Inc generated significant amount of revenue, $117929 million in 2021, surging by 37.2% in comparison to 2020 when it was $85965 million. Net income surged according to the latest fillings, jumping in 2021 by around 35.1% adding up to total of $39370.0 million. Besides, profit margin, which levels at 33.4%, shows an improvement, comparing to the previous years.

Berkshire Hathaway Inc (BRK.A)

Himalaya Capital Management’s stake value: $268.4 Million

Percentage of Himalaya Capital Management’s 13F Portfolio: 10.1%

Berkshire Hathaway Inc. does business in Offices of Other Holding Companies industry, which is Management of Companies and Enterprises sector and has 2020 employees. Current CEO is Warren Buffett.

As of February 16, 2022 Berkshire Hathaway Inc had a market cap of $586.823 Million. Analysts predicted 1 year target price of $335.58 that exceeds the current price of $212.41 for 58.0%. Trailing twelve months P/E ratio is currently 15.66 making it a slightly cheaper stock than the rest of the S&P500 index. Besides, profit margin, which levels at 33.4%, shows an improvement, comparing to the previous years.

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Alphabet Inc (GOOGL)

Himalaya Capital Management’s stake value: $248.6 Million

Percentage of Himalaya Capital Management’s 13F Portfolio: 9.3%

Alphabet Inc does business in All Other Telecommunications industry, which is Information sector and has 135301 employees. Current CEO is Sundar Pichai.

As of February 16, 2022 Alphabet Inc had a market cap of $1.817T Million. Analysts predicted 1 year target price of $3454.77 that exceeds the current price of $2732.93 for 26.4%. Trailing twelve months P/E ratio is currently 24.52 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Alphabet Inc generated significant amount of revenue, $257637 million in 2021, surging by 41.2% in comparison to 2020 when it was $182527 million. Net income surged according to the latest fillings, jumping in 2021 by around 88.8% adding up to total of $76033.0 million. Further, in 2021, the net profit margin, was at 29.5%, shows an improvement compared the company’s previous years of operation.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 16, 2022.

Stock	% of portfolio	Market Cap (USD)	P/E	Net earnings (USDm)	Net earnings y/y	Profit margin
Micron Technology Inc (MU)	40.1%	107.902B	14.9	5861	118.1%	21.2%
Bk Of America Corp (BAC)	24.4%	386.282B	13.4	31978	78.7%	34.1%
Meta Platforms Inc (FB)	11.1%	586.823B	15.7	39370	35.1%	33.4%
Berkshire Hathaway Inc (BRK.A)	10.1%	586.823B	15.7	39370	35.1%	33.4%
Alphabet Inc (GOOGL)	9.3%	1.817T	24.5	76033	88.8%	29.5%

Canadians can find the above stocks on Questrade.

Other investors can use Interactive Brokers or eToro.

Disclosure & Disclaimer: Please take into consideration that this is not financial, investing, or tax advice. The information on this website is for informational and recreational purposes only. Before any financial decision do your own due diligence. Some of the links are affiliates, and I may earn a small commission when you make a purchase through them at no additional cost to you.