Charlie Munger’s Protege Put 48% of His Portfolio in Alphabet — and Has Since Made a Major Portfolio Shift

Li Lu, widely known as the “Chinese Warren Buffett” and a close friend of the late Charlie Munger, runs Himalaya Capital out of Seattle, Washington. The firm manages a small, concentrated book of high-conviction positions, and Li Lu has never been afraid to size up his best ideas aggressively. That discipline paid off handsomely through much of the recent AI-driven rally in technology stocks.

For investors seeking a fund manager who thinks like Charlie Munger, the Himalaya Capital portfolio is worth studying closely. The emphasis is on exceptional businesses with durable competitive advantages, purchased at reasonable prices. Whether you follow Munger’s philosophy or Warren Buffett’s, the portfolio’s construction offers a masterclass in concentrated, long-term ownership.

This piece examines the key holdings and how Li Lu has been repositioning, drawing on the Q2 2026 13F filing, which Himalaya submitted to the SEC in August 2026. One thing the filings make clear: Li Lu is an extremely patient investor who lets compounding do its work over years, not quarters.

Alphabet

Alphabet (NASDAQ:GOOG | GOOG Price Prediction) and its Class A shares (GOOGL) together represent the core of the Himalaya portfolio. As of the Q2 2026 13F filing dated June 30, 2026, GOOGL accounts for 24.55% of the portfolio and GOOG accounts for another 23.39%, giving Alphabet a combined weighting of roughly 48%. The position has been held across both share classes since at least 2020, making it one of the firmest long-term convictions in the fund.

The concentration is striking even by the standards of other bold allocators. It echoes the kind of weighting that Apple (NASDAQ:AAPL) once commanded at Berkshire Hathaway (NYSE:BRK.B) before Berkshire meaningfully trimmed that position. Li Lu, for his part, has stayed the course on Alphabet.

The business has given him plenty of reason for patience. In Q2 2026, Alphabet reported revenue of $119.8 billion, up 24% year over year, marking its 12th consecutive quarter of double-digit revenue growth. Google Cloud was the standout, with revenue surging 82% to $24.8 billion as enterprise demand for AI infrastructure continued to accelerate. Operating income rose 30% to $40.8 billion, and operating margin expanded two percentage points to 34%. The Gemini app now counts 950 million monthly active users, and the Cloud backlog has climbed to $514 billion.

On valuation, Alphabet is no longer the deep bargain it appeared at the start of 2025, but it remains reasonable for a business of its quality and growth trajectory. The stock trades at roughly 33 times normalized earnings, a multiple that reflects the market’s growing appreciation for Alphabet’s AI positioning rather than the skepticism that prevailed just two years ago. For a company that has now strung together a year of accelerating Cloud growth and consistent search revenue gains, that valuation is far from stretched.

PDD Holdings: The New Major Bet

The most significant change in the Q2 2026 portfolio is the dramatic build in PDD Holdings (NASDAQ:PDD), the parent of e-commerce platforms Pinduoduo and Temu. Li Lu added 6.15 million shares during the quarter, a 133.5% increase in his position, pushing PDD to roughly 22.2% of the portfolio. That makes it the third-largest holding, just behind the two Alphabet share classes.

The move signals that Li Lu sees significant intrinsic value in PDD at current prices, applying the same contrarian logic he has used historically when buying deeply discounted quality businesses. PDD has faced regulatory scrutiny and concerns about slowing overseas growth for Temu, but those headwinds appear to have created the kind of discount that value-oriented investors find compelling.

Occidental Petroleum: A Closed Chapter

Occidental Petroleum (NYSE:OXY) was a holding worth watching as recently as early 2026, when oil prices spiked on tensions surrounding the Strait of Hormuz and the stock surged more than 40% year to date by late spring. The position had been a small but meaningful contributor to performance, and Berkshire Hathaway’s long-standing ownership of OXY lent it additional credibility as a value play.

By the Q2 2026 reporting period, however, Li Lu had exited the Occidental position entirely. The sale removed OXY from Himalaya’s disclosed holdings for the first time in several quarters. The timing, coming after a sustained rally in oil prices and OXY shares, suggests Lu may have concluded the position had reached or exceeded fair value. The proceeds appear to have been redeployed into the PDD build and an addition to Berkshire Hathaway, which grew by roughly 23.5% to become the fourth-largest position at 15% of the portfolio.

The evolution of the Himalaya portfolio over recent quarters illustrates Li Lu’s core method: hold exceptional businesses for years at a time, make few changes, and when you do act, move deliberately and in size. It’s an approach that would have pleased Charlie Munger.

Editor’s note: This article has been updated to reflect Himalaya Capital’s Q2 2026 13F filing (filed August 14, 2026), which shows that Li Lu’s combined Alphabet allocation across GOOGL and GOOG has grown to approximately 48% of the portfolio, that OXY was fully sold in Q2 2026 with proceeds partly redeployed into a major new position in PDD Holdings, and that Alphabet’s Q2 2026 results showed revenue of $119.8 billion (up 24% year over year) with Google Cloud revenue surging 82% to $24.8 billion.

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