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 changes to passive flows and the rise of multi-strategy funds. Craver emphasizes Lone Pine's focus on long-term valuation and deep research, particularly regarding the disruptive potential of AI. He expresses bullishness on AI infrastructure, citing improving models, capacity shortages, and significant value being realized by companies implementing the technology. Craver also touches on Lone Pine's investment strategies, including concentrated long positions and shorts in sectors with value destruction, as well as the importance of private market insights for public market investing.

Outlines

Part 1: Market Context, Investment Philosophy

Part 2: AI Revolution, Investment Themes

Part 3: Portfolio Strategy, Private Markets

Part 4: Future Outlook, Personal Reflections

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Exchanges

Part 1: Market Context, Investment Philosophy

Market Changes Since 1998: Increased Volatility and High Valuations

Lone Pine's Edge: Long-Term Fundamental Investing in a Changing Market

Lone Pine's Unique Approach: Small Team Focused on Big, Long-Term Questions

Competitive Advantage: Longevity, Duration, and Identifying Secular Tailwinds

Part 2: AI Revolution, Investment Themes

AI Infrastructure Build-Out: A Generational Platform Shift in Early Innings

AI Investment Strategy: Beyond Infrastructure to Application and Incumbent Adoption

Part 3: Portfolio Strategy, Private Markets

Risk Management: Concentrated Long Positions and Contrarian Short Positions

Private Market Investing: An Imperative for Public Market Investors

Part 4: Future Outlook, Personal Reflections

Future of Investing: Active Management's Resurgence Amidst Disruption

Outside the Office: Reading and Philanthropy Focused on Helping Kids

Fundamentals Still Matter: Lone Pine’s David Craver

Exchanges

Part 1: Market Context, Investment Philosophy

00:05Market Changes Since 1998: Increased Volatility and High Valuations

Market Changes Since 1998: Increased Volatility and High Valuations

02:24Lone Pine's Edge: Long-Term Fundamental Investing in a Changing Market

Lone Pine's Edge: Long-Term Fundamental Investing in a Changing Market

04:11Lone Pine's Unique Approach: Small Team Focused on Big, Long-Term Questions

Lone Pine's Unique Approach: Small Team Focused on Big, Long-Term Questions

05:35Competitive Advantage: Longevity, Duration, and Identifying Secular Tailwinds

Competitive Advantage: Longevity, Duration, and Identifying Secular Tailwinds

Part 2: AI Revolution, Investment Themes

08:57AI Infrastructure Build-Out: A Generational Platform Shift in Early Innings

AI Infrastructure Build-Out: A Generational Platform Shift in Early Innings

12:29AI Investment Strategy: Beyond Infrastructure to Application and Incumbent Adoption

AI Investment Strategy: Beyond Infrastructure to Application and Incumbent Adoption

Part 3: Portfolio Strategy, Private Markets

14:29Risk Management: Concentrated Long Positions and Contrarian Short Positions

Risk Management: Concentrated Long Positions and Contrarian Short Positions

16:34Private Market Investing: An Imperative for Public Market Investors

Private Market Investing: An Imperative for Public Market Investors

Part 4: Future Outlook, Personal Reflections

18:24Future of Investing: Active Management's Resurgence Amidst Disruption

Future of Investing: Active Management's Resurgence Amidst Disruption

21:15Outside the Office: Reading and Philanthropy Focused on Helping Kids

Outside the Office: Reading and Philanthropy Focused on Helping Kids