What Funded My First Stock & How I Manage My Time as an Investor - Li Lu | CBS 2006【C:L.L Ep.29】

[Transcript]

AUDIENCE MEMBER: How do you finance first thing – first thoughts when you're an undergraduate?

LI LU: Well, I wrote a book and it gave me a little bit of advancement and somebody paid a small of money and bought the movie right for that.

But my net worth was negative because you have a whole bunch of borrowings, but I have cash and so that was pretty good. You know, on balance, you know my net worth, I mean the cash couldn't really offset the debt, but I do have cash so I was very very lucky in that regard.

AUDIENCE MEMBER: How do you allocate your time between searching for ideas, researching ideas, reading Value Line, reading books on biology, law and business?

LI LU: Well, I would say there's only two divisions.

All of the things you list, that's all searching ideas. Okay? So when I read biology, when I read physics, when I read history which is really one of my favorite things. It’s all searching ideas.

When I do business and when I find an idea, I want to read it. But if I find an idea that is actionable, say if one of those things jumps out, that's all I do. Okay, if I don't have, I do the other one. And then the rest of the time is basically with my kid and my wife. (Laughter)

We got two little ones, little girls, one and a half and three and a half. And they're really just – you know, I learn from them too because to see how human cognition really develop. Which is enormously important when you try to really figure out – you see in my checklist is; Okay, is that cheap? Is that a good business? Who's running it? What did I miss?

You know, I go through all the checklist when I go through the what did I miss, that is hugely important to understand psychology to understand human cognition. And no other places is better than really observing how human develop of those cognition from early on.

And that's why actually, you know, playing with my two little girls really help me tremendously as an investor. So again it's all work. (Laughter)

(Source: https://youtu.be/y3c2PKupiu8)

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