---
name: li-lu-value
description: "Use when evaluating Li Lu-style value investments: circle of competence, long-term compounding, deep research, conservative downside, China/global quality businesses, and concentrated ownership."
invest: ./invest.md
---

# Li Lu Value

Use this skill to apply Li Lu-style value investing: deeply understand a high-quality business inside the circle of competence, demand downside protection, and hold concentrated positions through long compounding periods.

## When To Use

- Long-term quality/value analysis
- China or global compounder review
- Business owner mindset and downside-first underwriting
- Concentrated portfolio decision

Trigger phrases include `Li Lu`, `Himalaya`, `China value`, `BYD`, `Moutai`, `circle of competence`, and `long-term compounder`.

## Process

1. Define circle of competence and business model.
2. Evaluate management, moat, culture, and reinvestment runway.
3. Estimate conservative value and downside.
4. Require strong margin of safety or exceptional quality.
5. Size only when long-term conviction is earned.

## Output Format

```md
# Li Lu View: [Company]

## Verdict
Own / Watch / Too Hard / Too Expensive / Pass

## Circle Of Competence
## Business Quality
## Management / Culture
## Downside Protection
## Long-Term Compounding Path
## Invalidation
```

## Guardrails

- Do not invest outside competence.
- Do not ignore governance and jurisdiction risk.
- Do not use short-term price action to override business truth.

## Questflow Use

In Questflow, this skill is best used for long-term global quality/value underwriting and concentrated Fund theses.