AI summary and analysis
Li Lu's public speech at San Francisco State University talked about the basic principles of value investing, circle of competence, cash flow, market fluctuations and long-term mentality. It is one of the classic speeches long cited in the Chinese investment circle.
Key points
- The speech started from his encounter with Buffett's class at Columbia, explaining that the change in value investing for him was not a technical level, but a change in the framework for understanding enterprises and markets.
- He emphasized that the company is behind the stock, and the real judgment must fall on future cash flow, competitive advantages and management, rather than the price chart.
- Market fluctuations are seen as a mechanism to serve investors: prices will give opportunities, but only if investors have independent judgment and sufficient patience.
- The circle of competence is not a static label, but is slowly expanded through long-term learning and business research; opportunities that you do not understand should be skipped even if they are popular.
- This piece of information should be marked as classic, but the source is a transcription archive, not the school’s official website, so the page needs to retain the source caliber.