What Does Li Lu See in a Pre-Revenue SPAC?

Given our penchant for simple, predictable and profitable businesses we almost never study companies that do not yet generate revenue. There are rare exceptions, however, particularly when an investor we admire wades into a situation that appears to depart from their usual approach. Such was the case when we noticed Li Lu of Himalayan Capital purchased around 1.25% of the total shares of Sable Offshore Corp. Matt briefly outlined the situation at Sable last week and I’ll expand a little on it here.

It turns out it’s an interesting situation to follow and maybe even own at some point. After a lengthy delay, Sable could be on the doorstep of starting production and on a path to substantial shareholder distributions in the next year and beyond.