Charlie Munger Gave His Family Fortune To 'Chinese Warren Buffett' – He Flipped It Into $400 Million: 'Backed Up The Truck And Made A Killing'

In the early 2000s, Charlie Munger–Warren Buffett's longtime business partner – made an unexpected decision. He handed almost $90 million of his family's fortune to a 38-year-old investor named Li Lu. 

At the time, Li was a rising star in the investment world, often called the "Chinese Warren Buffett." What followed was remarkable. That initial investment grew into about $400 million, showing just how successful that decision was.

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Li's relationship with Munger goes beyond just money management. In a 2019 Daily Journal Corporation meeting, Munger reflected on how rare it was to trust an outsider with his money, saying, "I'm 95 years old. I've given Munger money to some outsider to run once in 95 years. That's Li Lu." Munger saw something unique in Li, a combination of strategic thinking and an ability to seize opportunities others might overlook.


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With Munger's guidance, Li reorganized his fund and eliminated many of the flaws typical of hedge funds. This allowed him to focus on long-term investments without the constant pressure to show monthly returns. From 2004 to 2009, Li's fund achieved an annual compound growth rate of 36%; over 12 years, the capital grew more than 20 times.

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