Himalaya Capital Management Q4 2025 13F Holdings and Activi…

I. Institutional Overview

Himalaya Capital Management, led by the venerable Li Lu, represents one of the most disciplined and concentrated expressions of value investing in the modern era. As we dissect the 13F filing for the fourth quarter of 2025, we are looking at a portfolio that is the antithesis of the "closet indexing" prevalent in many institutional circles. With a reported value of approximately $3.57 billion and a portfolio consisting of only 9 holdings , Li Lu continues to demonstrate a "punch card" philosophy—a concept famously advocated by Warren Buffett and Charlie Munger, where an investor acts as if they only have twenty investment slots for their entire lifetime.

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II. Sector Allocation Analysis

At 43.86% , Communication Services is the crown jewel of the portfolio. This weight is almost entirely driven by the massive position in Alphabet (GOOG/GOOGL) . From a macro perspective, this suggests Li Lu views high-quality digital advertising and cloud infrastructure as the "new utilities" of the 21st century. Despite the rise of various AI competitors, the allocation shows a firm belief in the enduring moat of search and the structural growth of the digital economy. The slight rebalancing between Class A and Class C shares this quarter does not change the fundamental thesis: the digital gateway remains the most attractive place to park nearly half of the firm's capital.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

The remainder of the portfolio shows a mix of "fortress" assets and tactical plays. Berkshire Hathaway (12.64%) remains a significant piece of the ballast, providing a layer of safety and diversified industrial exposure. East West Bancorp (8.74%) is a specialized financial bet that likely leverages Li Lu’s deep understanding of trans-Pacific trade and the Asian-American business community.

The bottom three holdings— Occidental Petroleum (1.69%) , Crocs (1.51%) , and Apple (0.84%) —represent a combined weight of only about 4%. These are either "legacy" positions being phased out (like Apple), "speculative" value plays (like OXY), or "new exploratory" positions (like Crocs). The fact that Apple is such a small percentage (0.84%) is a loud statement: Li Lu does not see the same value in the iPhone maker as he does in Alphabet or PDD at current prices.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

The most significant move this quarter was the initiation of a new position in Crocs (CROX) , with an estimated investment of $53.7 million . While this only represents 1.51% of the portfolio, for a manager as concentrated as Li Lu, any new position is a major signal.

The addition of Crocs slightly increases the "offensiveness" of the portfolio by adding a mid-cap growth element to a portfolio dominated by mega-cap stability. However, because Crocs is a "value" play in terms of its P/E ratio, it doesn't significantly increase the portfolio's overall valuation risk. The Alphabet rebalancing is risk-neutral. Overall, the portfolio remains focused on businesses with high free cash flow and strong balance sheets.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The exit from SOC shows a healthy willingness to admit a mistake or a change in circumstances. In value investing, "cutting your losers" is just as important as "letting your winners run." By exiting SOC, Li Lu has removed a "distraction" from the portfolio—a small, underperforming position that didn't fit the "high-quality compounder" profile of his other holdings. This optimizes the "quality density" of the portfolio.

The overall intent of these sells is "Front-Line Consolidation." Li Lu is focusing his "front line" on a few key battles: Digital Dominance (Alphabet), Financial Stability (BAC/BRK), and Value-Driven Consumption (PDD/CROX). By removing the SOC position, he has made the portfolio even more concentrated and focused on his core strengths. The reduction in GOOGL is merely a technical adjustment to maintain that focus with maximum efficiency.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

Li Lu’s actions this quarter reveal a profound commitment to the principle of "waiting for the fat pitch." In a market that has been characterized by AI hype and macro-economic uncertainty, Himalaya Capital has not chased the latest trends. Instead, they have: 1. Maintained massive concentration in their highest-conviction ideas (Alphabet and BAC). 2. Optimized existing winners through share class arbitrage, showing a level of detail-oriented management that most large funds ignore. 3. Selectively expanded into "unloved" but high-quality consumer brands (Crocs), demonstrating that they are still looking for value in the "troughs" of the market.

It is crucial to remember that 13F filings only include US-listed long equities . Li Lu is known for his deep expertise in Asian markets, particularly China. A significant portion of Himalaya Capital’s total AUM is likely invested in Hong Kong, Shenzhen, or Shanghai-listed companies that do not appear in this report. Therefore, this 13F represents only a fragment of Li Lu’s total investment strategy. For example, his bullishness on PDD might be balanced by shorts or other hedges in the international market that we cannot see.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.