Kelly Granat discusses Lone Pine Capital's return to portfolio breadth across different industries rather than relying on mega-cap tech concentration.
Insight
Granat: For extraordinary businesses, CEO quality barely matters on the margin
“There's also a lot of room for owning just fantastic businesses that, to your point, whether you have an A plus CEO or an A minus, I'm not sure it really matters that much on the margin. We just want to make sure we're not paying too much for them, right?”
Insight
Granat: Earnings day price reactions have become a positioning coin toss
“The game of, you hand me an earnings release, and I'll tell you what the stock's gonna do, was actually a fundamental game that we were pretty good at a decade ago. Now, it's like, coin toss. What's the setup? You tell me. What's the whisper number? What are t…”
Prediction Not checkable as stated
Granat: LLM providers will consolidate and fail to capture most AI value
“I would say at a high level, you know, obviously we have been of the view or questioning of the view from the beginning, I would say to stepping back that LLMs would not be where the value was ultimately probably largely created and that there, the fact that t…”
Disclosure
Granat: Lone Pine holds large Meta position for AI application commercialization
“And so that's part of why we have such a large position in Meta and have for the last bunch of years as we feel like that's the most real life example at scale of commercializing a lot of the capabilities in core products today, right?”
Insight
Granat: Higher cost of capital is widening the gap between corporate winners
“With the cost of capital coming back and largely gonna persist, we can debate at what level, you're seeing just winners and losers across industries in ways that we have not seen for a really long time... The free lunch of the zero interest rates and there's m…”
Insight
Granat: Aerospace suppliers possess exceptional pricing power and recurring revenue
“We have been investors for really Two decades, almost, and continue to be in the aerospace market, both OEM and aftermarket, and continue to love those businesses. They have, you know, all of the attributes of businesses we like, great organic growth, great pr…”