Mercado Libre is mentioned as a peer trading at a significantly higher forward PE ratio (40x) than PDD Holdings.
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Li Lu Bets: Why Himalaya Capital Just Risked 22% of Its Portfolio on PDD
Aug 19, 2026
This episode of Fundamental Deep Dive discusses PDD Holdings (PDD) due to a significant investment by Himalaya Capital Management, managed by Li Lu. The fund increased its PDD position by over 133%, making it their third-largest holding at 22.17% of the portfolio. The discussion explores the counterintuitive nature of this bet given PDD's exposure to regulatory risks and a decelerating Chinese economy, contrasting it with Western perceptions and highlighting its unique business model and value investing roots influenced by Duan Yongping and Warren Buffett.
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Tickers discussed in this post
Alibaba is mentioned as a peer trading at a higher forward PE ratio (18.1x) than PDD Holdings, despite facing domestic headwinds and geopolitical overhangs.
Amazon is mentioned as a peer trading at a significantly higher forward PE ratio (20.7x) compared to PDD Holdings.
Himalaya Capital, managed by Li Lu, made a high-conviction bet on PDD Holdings (PDD), increasing its stake by 133% to 22.17% of its portfolio, signaling a strong buy despite regulatory and economic headwinds.
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Tracked calls opened from this post
PDDbuy opened Aug 19, 2026
-10.16%