Charlie Munger & Li Lu on China (2018)

Munger rarely shared a stage with the people who manage money for him — but Li Lu is the exception that proves how high his bar was. Li Lu is, by Munger’s own account, the only outside manager he ever entrusted with family capital, and the man he is said to have regarded as a kind of “Chinese Warren Buffett.” This 2018 conversation pairs the two of them on the subject Munger grew most bullish about late in life: China.

Why watch. You get Munger’s China thesis from the man who helped form it, and you get Li Lu drawing out how value-investing principles travel — or don’t — across very different markets and institutions. Running underneath is Munger’s perennial theme: the scarce psychological make-up that separates a genuine investor from a clever trader. The mutual respect is unmistakable, and it’s the closest thing to a master-and-protégé dialogue in the Munger catalogue.

Watch all three parts. Part one is embedded above. Continue with Part 2 and Part 3 for the full conversation.