'Chinese Warren Buffett' Buys Shares In These 2 International Dividend Stocks: Here's Why

Zinger Key Points
  • Charlie Munger has described Li Lu as, “the Chinese Warren Buffett” at a Daily Journal meeting.
  • Among the companies Himalaya Capital invests in is a banking company.

Li Lu is a Chinese-born American value investor and the founder and chairman of Himalaya Capital, a value investment firm that embraces the principles of Benjamin Graham, Warren Buffett and Charles Munger. 

Himalaya Capital's primary focus is on publicly traded companies in Asia, with an emphasis on China and companies that have a presence there. The goal is to achieve superior returns as long-term owners of high-quality companies with a substantial “economic moat” and growth potential.

Also Read: 'English Warren Buffett' Scoops Up Shares In 3 International Dividend Stocks: Here's Why

Check out two dividend stocks Himalaya Capital holds in its portfolio. Both companies have holdings in China.

Bank of America Corp BAC offers a forward dividend yield of 2.72% or 88 cents per share annually, conducting quarterly payments with a strong track record of increasing its dividends for nine consecutive years.

Bank of America is one of the largest financial institutions in the U.S., serving almost 68 million consumer and small business clients with approximately 3,900 retail financial centers, about 16,000 ATMs, and digital banking with at least 56 million verified digital users.

As of the third quarter, Himalaya Capital holds more than 14.5 million shares in Bank of America, its second-largest position worth 25% of the portfolio.

Micron Technology, Inc. MU offers a dividend yield of 0.78% or 43 cents per share annually, through quarterly payments with an inconsistent track record of increasing its dividends.

Micron Technology is a producer of computer memory and computer data storage including dynamic random-access memory, flash memory and USB flash drives.

Himalaya Capital’s largest position is Micron, accounting for 33% of the portfolio, owning more than 11.4 million shares as of the third quarter.

About Li Lu: Li was inspired to begin his investing career after hearing Buffett, a Columbia alumnus, give a lecture at Columbia University in 1993. Li and Munger also became close friends with Li introducing him to investing in BYD BYDDF, which became a successful investment for Berkshire Hathaway (NYSE: BRK-A).

Munger described Lu as, “the Chinese Warren Buffett” at a Daily Journal meeting after Lu turned his focus towards investing in the less saturated Chinese market.

According to a Wall Street Journal article from 2010, Munger discussed the possibility of Li becoming a top Berkshire investment official and said, "In my mind, it's a foregone conclusion."

Lu decided to withdraw himself from the consideration and stay with his own firm, which has more than $18 billion in assets under management.

Read Next: This US Rep Bought 3 Vanguard ETFs Paying Monthly Dividends, Saw Gains In Recent Trades

Photo: Joi via Wikimedia Commons

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Posted In: AsiaLarge CapNewsDividendsDividendsHedge FundsGlobalMarketsTechTrading IdeasGeneral13F filingsCharlie MungerDividend Stocks Owned By Hedge FundsHimalaya CapitalLi LuWarren Buffett
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