Invest Like the Best

Key Takeaways

The best investors get excited during periods of extreme change
Key traits for being a successful investor: Be (1) wildly competitive and (2) incredibly curious
Collaboration is key: Once an investment research team grows beyond 20 people, silos form and collaboration decreases
Design your organization in a way that encourages dialogue, debate, information sharing, and people to push one another
Traits of a Perfect Business
- 1. Incredible leadership
- 2. Really strong unit economics
- 3. A solid moat around the business
- 4. Excellent value proposition to the customer
- 5. The ability to grow organically without investing meaningful capital
- 6. A huge runway for growth that can last for many years without being disrupted
The optimal portfolio should consist of several things that you are excited about and that have idiosyncratic drivers
Certain market backdrops are conducive for different investing styles: Certain investors play a different game from everyone else and there are certain investors who play the popular game best
Hire self-aware and curious people who love to learn
- Bonus points if they competed in sports at a high level; these people understand hard work, failure, disappointment, and achievement
Do not fall victim to paralysis by analysis: Recognize that there is always the opportunity to learn more, but know when you have enough information to make a decision
Investing is a pattern-matching business and the gap between winners and losers is widening
How to live a rewarding life: Figure out who in your life matters to you, figure out what matters to them, and then show up for them in all the ways that matter to them

My guest today is Kelly Granat. Kelly is the Co-Chief Investment Officer and Managing Director at Lone Pine Capital, one of the most storied and successful hedge fund and investment firms of the last several decades. We explore how investing has evolved since Kelly joined the industry and she shares insights into Lone Pine maintaining its edge through deep fundamental research and a collaborative culture. We discuss what makes great businesses and great investments, how leadership can transform companies, and Kelly’s perspective on evaluating management teams and identifying opportunities around corporate change that the market often misprices. Please enjoy my conversation with Kelly Granat.

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For the full show notes, transcript, and links to mentioned content, check out the episode page here.
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This episode is brought to you by Ramp. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Ramp is the fastest-growing FinTech company in history, and it’s backed by more of my favorite past guests (at least 16 of them!) than probably any other company I’m aware of. Go to Ramp.com/invest to sign up for free and get a $250 welcome bonus.
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This episode is brought to you by AlphaSense. AlphaSense has completely transformed the research process with cutting-edge AI technology and a vast collection of top-tier, reliable business content. Imagine completing your research five to ten times faster with search that delivers the most relevant results, helping you make high-conviction decisions with confidence. Invest Like the Best listeners can get a free trial now at Alpha-Sense.com/Invest and experience firsthand how AlphaSense and Tegus help you make smarter decisions faster.
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This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform.
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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes:
(00:00:00) Learn About Ramp, Alphasense, & Ridgeline
(00:06:09) Market Structure Evolution
(00:08:39)The Impact of Passive Investing
(00:10:21) Collaboration & Team Dynamics
(00:13:48) Excitement in Periods of Extreme Change
(00:14:21) The Role of Competition & Curiosity
(00:22:00) Fundamental Research & Data Integration
(00:27:34) Investment Philosophy
(00:35:31) People-Centric Investing
(00:42:24) Succession Planning
(00:49:32) Facing the Pressure of Early Success
(00:50:31) Burnout & Rediscovery
(00:57:08) Learning from Industry Leaders
(00:58:04) Evaluating Talent and Competition
(01:11:29) Lessons in Investment
(01:27:27) The Kindest Thing Anyone Has Ever Done For Kelly

Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414]

Podcast Notes Playlist: Business