Fundamentals Still Matter: Lone Pine’s David Craver

David Craver, Co-CIO of Lone Pine Capital, discusses the evolving market landscape and its implications for long-term, fundamental investors. He notes increased single stock volatility and high valuations as key differences from the late 1990s, attributing these shifts partly to passive investment flows. Craver argues that these changes create opportunities for fundamental investors like himself, as fewer participants focus on valuation. Lone Pine distinguishes itself through its small research team focused on long-term industry trends, particularly the disruptive potential of AI. Craver expresses bullishness on AI infrastructure, citing improving models, capacity shortages, and significant value being realized by companies implementing the technology. He also touches on Lone Pine’s investment strategies, emphasizing concentrated positions based on deep company knowledge and a focus on sectors where value is being created or destroyed.