Li Lu's Trades and Holdings in Q1 2026

Breaking down the stocks Li Lu (Himalaya Capital) bought, sold, and held in Q1 2026, including their holdings at the end of the quarter. All data sourced from Himalaya Capital's 13F filed on May 15, 2026.

Who are Li Lu and Himalaya Capital?

Himalaya Capital Management is an investment firm founded in 1997 by Li Lu, a Tiananmen Square protest leader who became a renowned value investor and protégé of Charlie Munger. The firm embraces the value investment principles of Benjamin Graham, Warren Buffett, and Charles Munger, seeking superior returns through long-term ownership of high-quality companies with substantial economic moats. Li's disciplined approach focuses on businesses with enduring competitive advantages, growth potential, and trustworthy management teams, primarily in the U.S. and China.

Himcap.com
Wikipedia on Li Lu
Q1 '26 13F filed with SEC

Holdings in Q1 2026

Current Investment Strategy

Li Lu's Himalaya Capital, a Seattle-based value investment firm managing approximately $3.2 billion in U.S. equities as of Q1 2026, doubled down on its hallmark Graham-Buffett-Munger philosophy of extreme concentration and long-term ownership, holding just 14 positions with a dominant anchor in Alphabet while maintaining core stakes in PDD Holdings, Berkshire Hathaway, East West Bancorp, Occidental Petroleum, and Apple. In a notable expansion of its "quality compounder" theme, the firm initiated five new positions in Q1 2026—Tencent Music, S&P Global, H&R Block, Moody's, and MSCI—signaling fresh conviction in financial data and information services franchises alongside its existing exposure to U.S.-China cross-border commerce and dominant technology platforms.

New Investments

Tencent Music TME

Li Lu bought $61.16B of Tencent Music in Q1 2026. Tencent Music has experienced a precipitous decline of 48.2% over the past year, with its stock trading at $8.60 compared to a 52-week high of $26.70, reflecting significant investor concerns about the company's growth trajectory. Despite beating revenue expectations in Q1 2026, the company's profitability has deteriorated sharply with net income falling 43.34% sequentially and membership revenue growth decelerating to 7% from 13% in the previous quarter. Management's recent decision to reduce disclosure of certain metrics has further eroded investor confidence, suggesting potential challenges in maintaining previous growth rates amid intensifying competition in China's music streaming market.

• Stock price down 48.2% over the past 12 months, with a 52-week trading range between $8.44 and $26.70.
• Most recent quarter revenue of $1.15 billion beat estimates by 6.3% but net income fell 43.34% sequentially to 2.60B HKD from 4.59B HKD.
• Membership revenue growth decelerated to 7% in Q1 2026 from 13% in the previous quarter, signaling slowing core business momentum.

S&P Global SPGI

Li Lu bought $51.66B of S&P Global in Q1 2026. Earnings and cash flow have continued to grow even as the share price has fallen roughly 23% over the past 12 months and pulled back from its $579 52-week high, leaving the stock trading at about 25–26x earnings with a sub-1% dividend yield. In the latest reported quarter (Q1 2026), the company posted EPS of $4.97 versus $4.37 a year ago and ahead of the $4.82 consensus (about a 3% beat), indicating that growth is accelerating rather than weakening over the last couple of quarters. Recent beats and an improved outlook have led Evercore ISI to raise its target price to $629, while the Street’s average target of about $556 implies meaningful upside as investors focus on recovering debt issuance, structural growth in index/passive AUM, and steady demand for proprietary data as key drivers of further value creation.

• Q1 2026 EPS of $4.97 rose from $4.37 in the prior-year quarter, an increase of roughly 14%, and beat consensus of $4.82 by about 3%.
• The stock is down about 22.7% over the last 12 months and currently trades at a P/E of roughly 25.6x with a dividend yield around 0.8–1.0%.
• Analysts’ average target price of approximately $556 (Evercore ISI at $629) implies roughly 35–40% potential upside, with 100% of covering analysts rating it Buy or Strong Buy.

H&R Block HRB

Li Lu bought $51.64B of H&R Block in Q1 2026. H&R Block has delivered strong performance in the current quarter (Q3 FY2026), reporting revenue of $2,398.11 million and net income of $847.9 million, reflecting its seasonal business pattern as the peak tax season drives substantial revenue and profit growth. Despite a slight miss on Q2 adjusted EPS ($1.84 vs $1.89 consensus), the company beat revenue expectations ($198.9M vs $187.36M consensus), demonstrating resilient demand for its tax preparation services. The company maintains a solid financial position with a market cap of $6.65 billion, a P/E ratio of 11.30, and a dividend yield of 3.11%, positioning it favorably in the financial services sector.

• Revenue surged to $2,398.11 million in Q3 FY2026 from $198.9 million in Q2 FY2026, a seasonal increase of 1,105.7%.
• Net income increased to $847.9 million in Q3 FY2026 from approximately $232.6 million in Q2 FY2026, a growth of 264.5%.
• Market cap has expanded by 21.1% to $6.65 billion from $5.49 billion, while maintaining a dividend yield of 3.11%.

Moody's MCO

Li Lu bought $51.38B of Moody's in Q1 2026. Over the last two quarters, Moody's has delivered solid fundamental momentum, with the most recent quarter's EPS of $4.33 beating consensus of $4.22 (a 2.7% surprise) on revenue of $2.01B versus $1.96B expected. Sequential net income growth of 11.8% to $646M and trailing-12-month EPS of about $13.94 indicate earnings are trending higher even as the share price, around $440, sits roughly 19% below its $546.88 52‑week high after an approximate 10% decline over the past year. Recent analyst actions, including Mizuho lifting its price target to $550 within a broader street range of $460–$620, together with technical commentary around a potential bullish breakout, highlight expectations that improving credit and data-analytics demand this quarter could support further upside in valuation.

• Most recent quarter EPS of $4.33 beat the $4.22 consensus by about 2.7%, with revenue of $2.01B versus $1.96B expected.
• Net income increased 11.8% sequentially to $646M, up from $578M in the prior quarter.
• Shares trade near $440, around 19% below the $546.88 52‑week high, with a dividend yield of about 0.96% and trailing EPS of roughly $13.94.

MSCI MSCI

Li Lu bought $10.21B of MSCI in Q1 2026. Building on a solid Q1, when pre-tax margin reached 45.7% (up 1.4 percentage points year on year), MSCI’s Q4 CY2025 results showed revenue rising 10.6% to $822.5 million with pre-tax margin expanding further to 47.3% and adjusted EPS increasing roughly 11% to $4.66 (a 1.6% beat versus consensus). Despite this steady, profitable growth and Street’s expectation for full-year EPS to climb to about $17.30 (up roughly 12% over the next year), the stock is approximately flat over the last 12 months (around -0.4%) and trades at a premium forward P/E of about 27.6x, with the latest quarter prompting a roughly 3.5% pullback as in-line revenue and a small EPS beat fell short of investor hopes. With Wall Street’s average target near $678 versus a recent trading range around $523–$562, further upside in value will likely hinge on management sustaining low double-digit growth in its high-margin index and analytics franchises and proving that the currently elevated sub-50% pre-tax margins are sustainable.

• Q4 CY2025 revenue increased 10.6% year over year to $822.5 million.
• Q4 CY2025 adjusted EPS rose from $4.18 to $4.66, up roughly 11% and about 1.6% above analyst expectations.
• The stock is down about 0.4% over the past year and trades at a forward P/E of roughly 27.6x, with Street projecting full-year EPS of about $17.30 (up roughly 12% year over year).

Added, Trimmed, and Exited

Added

Himalaya Capital added to its existing position in Crocs (CROX), purchasing roughly 258,900 additional shares — a ~41% increase — bringing the total holding to approximately 887,000 shares valued at $73.6M.
What it means: Adding to Crocs (CROX) amid what has been a beaten-down consumer discretionary environment signals that Li Lu sees the market's pessimism on the stock as overdone. Crocs has faced headwinds from slowing growth concerns and macro pressure on consumer spending, yet the company continues to generate strong cash flows and maintains pricing power through its brand identity. Increasing the position here suggests conviction that the current valuation presents a margin-of-safety opportunity consistent with Himalaya Capital's value-oriented, long-term framework.

Trimmed

Himalaya Capital dramatically reduced its stake in Bank of America (BAC), selling approximately 7.4 million shares — a ~71% cut — leaving a remaining position of roughly 3.0 million shares valued at $146.2M, down from $573.7M the prior quarter.
What it means: This is a significant and decisive de-risking of the largest position Himalaya Capital held going into 2026. Bank of America (BAC)'s exposure to interest rate sensitivity, potential credit quality deterioration in a slowing economy, and compressed net interest margins may have prompted Li Lu to reassess the risk/reward at current prices. The timing is also notable — the trimming coincides with a period of elevated macro uncertainty, and the freed-up capital appears to have been partially redeployed into the newly initiated positions in high-quality financial data businesses like S&P Global (SPGI) and Moody's (MCO), suggesting a deliberate rotation away from traditional banking toward asset-light, competitively moated financial infrastructure businesses.

Exited

Himalaya Capital did not fully liquidate any existing positions this quarter.

Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.