Q1 2025 marks a significant shift in Li Lu’s approach, with substantial reductions in three key holdings. Bank of America (-23.42%), Alphabet Class C (-19.47%), and most notably Apple (-65.19%) all saw major cuts. These moves likely represent a combination of profit-taking, valuation concerns, and portfolio rebalancing rather than a fundamental loss of confidence. The selective nature of these reductions—maintaining full positions in several other holdings—suggests a deliberate recalibration rather than a defensive retreat from equities.

Despite reducing his Bank of America position, Li Lu maintains significant exposure to financial services, which still represent approximately 59% of the portfolio when combining BAC, BRK.B, and EWBC. The maintenance of his full position in East West Bancorp alongside the reduced but still substantial BAC stake suggests continued conviction in banking fundamentals, albeit with some valuation sensitivity. Berkshire Hathaway’s increased prominence in the portfolio (now the second-largest position) provides diversified exposure to multiple sectors through its conglomerate structure.

Li Lu’s approach to technology has become increasingly selective. While maintaining his full Alphabet Class A position, he reduced Alphabet Class C shares and dramatically cut his Apple stake. This suggests a preference for companies with diverse revenue streams and emerging AI capabilities (Alphabet) over pure consumer hardware plays. The differential treatment between Alphabet’s share classes may also indicate a strategic preference for voting rights, giving Li Lu a voice in corporate governance while still optimizing position sizes.