YouSaid · the spoken record

Kelly Granat

lines on the record: 97
first: 2025-03-11
most recent: 2025-03-11
sittings or episodes: 1
sources: podcast

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“Making sure it's mutual. Think relationships change people's lives. I think you recognize I just turned 50 that some friendships and relationships that have duration in your life are more a function of circumstance and you wouldn't necessarily choose some of those relationships today. And the ones that are the inverse of that that have the duration and are still the most meaningful are the most valuable. And so it's the concentration theory of both investing in your highest and best ideas and the concentration theory of just the people who are incredibly meaningful to you because they've seen you grow up and seen you grow and change. But then also the last piece where the postscript would be leaving room for new because new I think helps us all grow and we're different than we were when I certainly am when I was 20. And the new is the reflection of like who you meet and connect with today, which wouldn't be the same thing as it was 30 years ago.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“In all the ways that matter to them, and that will be a rewarding life for you because he's like, I think he got the professional part down, which was super sweet. And so I take that to heart and work really hard on relationships and the people that show up for me to be there for them, for the things, and for the people that matter for them.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“So the summer after my freshman year of college, I taught tennis at a camp in Florida and there was a golf camp at the same resort and I became friendly with the golf pro and we'd meet after I was done teaching for the day and he taught me how to play golf that summer, which I don't play anymore, but I did at the time. And at the end of the summer, the last night we had dinner together before I went back to school. And he said to me, can I tell you something? And he was probably, I was 18 and he was 32. And he said, you know, You are so driven and you're so intense. And I just can tell that like I'm super excited to follow your life because it's going to be really interesting is my sense. He said, but you're also an incredibly soulful person and your relationships clearly matter to you. He said, so my piece of advice for you would be figure out who in your life matters to you. Figure out what matters to them and then show up for them.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, you have inside of these shops 20, 30, 40 desks or pads, as they call them, covering a sector, right? And they all look at the same data and they sit in the same meetings and on the same calls. And of course they talk to each other because you have a peer network sitting inside your own firm. And so often, and I have never worked at a pub but have several friends who have still do and have come out of there. You can see how everyone's lined up. And you'll have 20, 25 books long a stock into a print of a quarterly earnings estimate and a quarterly conference call and the numbers come out and it was better, but it wasn't better enough because the whisper number, the data was suggesting they were going to beat by three points and then they'll beat by two points. And so the socks are actually going to sell off. The game of you hand me an earnings release and I'll tell you what the stock's going to do was actually a fundamental game that we were pretty good at a decade ago.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Of our LPs, right? I think that's a pretty compelling proposition to a potential client for our firm. And that doesn't happen in a day or a week or a month. And my investment underwriting doesn't tie to that time horizon, right? And so we want to be judged over a years, not quarters, and we're increasingly in a market that is evaluated by, forget quarters, weeks and months per the Pods conversation earlier. And a lot of pods, you know, if you don't put up, we laugh at that the activity in the market in the last few days of every month because if you're not having a bad month, you're going to get your capital yanked so you take risk, right? Or you have to degrowth or these activities. This never existed, right, five or ten years ago, but this is the market forces at work. And so, again, great for us long-term investors, I want to lean in when they're leaning out and vice versa. But the value of doing that and the benefit of that capability takes time to reveal itself.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, certainly the funds flows of the last bunch of years would tell you that active management is undervalued relative to our understanding and execution of that value, right? The move to passive, this idea that like just own the MAG 7 and I can do that myself and why do I need you has become a little bit of a cocktail party chatter at this point. And we are obviously huge believers in active management and huge believers in the value of doing fundamental analytical work on companies and not indexing and that the premium for that is undervalued relative to its worth. And I think part of what makes that, I think, a difficult conversation right now is the short-term orientation of the market and how it takes, you know, we're focused on compounding over a very long period of time, right? We are the largest single investor in our fund. A third of the assets is internal capital. So what I wake up every day really excited to do is compound my money alongside”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“In areas like healthcare. This happens in certain sectors and also in certain geographies where there's very few companies that have high growth or have exposure to a thematic that the market is excited about because of a geography or because of a sector focus. We like those businesses too, but they tend to trade at valuations with don't stack up against businesses that we see across the portfolio that are more compelling. So even though we love lots of companies around the world and would love to own them, we're always waiting for like a wobble or a dislocation or a perceived competitive threat to give us our chance to own them because they don't stack relative to owning more of a lot of the compounding businesses that we love.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Likely over time. So I think that's another big area. Those are two. I mean, consumer is harder, I would say. Most businesses, we're more active there on the short side than the long side at this point just because there's just an inherent maturity to, I think, a lot of those businesses. And the ones that are the really scaled winners, even just watching the revaluation of Walmart in the last 18 months has been super interesting as they've really emerged as a more consistent executor and Doug's done a fantastic job, I think, with that business. But that, I mean, Walmart's now trading at a pretty hefty multiple and Costco's trading really, I mean, these are the best executors in the space, and they're really expensive. So I think the market has sort of figured out that they are the winners. And so less to do there, in my mind, in terms of runway for long growth that's underappreciated or maybe fairly valued relative to the actual level of growth. It's one of the things we debate a lot, honestly, is”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“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 all of the attributes of businesses we like, great organic growth, great pricing power. a lot of as people fly more, planes get used more. There's a need for replacement parts. They get specked in to planes as they're being built. And so there's typically single source or sole sourced. And they're super low cost as a percentage of the overall plane. And so they're just recurring revenue businesses with a lot of pricing power and very little capital against those businesses to grow organically. And, you know, feel like there's a pretty good open-ended structural story around people traveling more and valuing experiences. And so that will continue to, I think, be a very productive area for us. And there's a bunch of different names that we've owned in that ecosystem and will continue to own.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“We own a lot of one off ideas in non bank financials. So the alt is one example of that. But we have a number of positions of single stock, not thematic companies that are doing really interesting things. One is around transformative M&A at scale. One is around product innovation. One is around AI. That's not an AI business, but is using AI to thoughtfully do things inside of its sector. So that's an area where I feel like we typically don't do a lot with the banks, not an area where we feel like we can really add value, there's regulatory risk and all the, and we don't think those are not sort of don't really measure against our quality filter as businesses. But there's a number of pockets inside of financials that we think are not very well covered that are pretty interesting. And we've got a great team doing research there. So I think that's one area. We have been.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“A thoughtful analytical answer to that question, but the mark, there is an in answer to that question yet, and these are still underowned relative to like all of the big institutions that have to index and have to own these things and will continue to have to own them in bigger size as they grow. And so the idea of like a new asset class is sort of interesting to me.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Correct. Yeah. KKR or Aries and their ability to offer unparalleled customer service, product innovation, opportunities for talent development, new channels of growth is just, it's spinning on its own in terms of this flywheel, right? In a way that I don't think anybody could have really anticipated. And what's interesting about these is the bare case on them because they're a new asset class as public companies is we haven't really been through like a big cycle. So how will they perform? And then the other piece I think the market struggles with is how do you value the carried interest part of their revenue model, right? Everyone can value management fees and make a projection around how AUM will grow. But what do you pay for that, right? And so that's interesting to me because we can do work on that. We can have a point of view on that. We can look across cycles, look across products, how they're growing and think about how funds perform and have a”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“It's expensive. The world kind of knows it. Correct. And it's priced. So I think. Change in leadership. It's a new product that the market doesn't appreciate fully in terms of its capability, how big it can be, how accretive it is to margins and returns, how little capital it requires, ways to leverage the core IP of a business in new channels, in new products, the value of distribution to the earlier conversation and how that's underappreciated in certain businesses and the ability to flow other products, other services into that, or sometimes it's just the benefits of scale. The companies get to a certain size and then their market power step functions, right? And what they can, and then that somehow improves the value proposition and the flywheel of what they're doing in a way that the market doesn't fully appreciate. And we see this now, I would say, like in the alts space, for example, where these businesses are now, you know, they're all mostly public and that's new.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, it's all the things we're all searching the globe for, right? We want Incredible leadership. Really strong in economics, a really good moat around a business in terms of something that is different, incredible value proposition to the customer, whoever it may be, the ability to grow organically without investing meaningful capital and a huge runway for growth that can last for many, many years without being disrupted if we're doing our jobs, right? In terms of the management team of the company that's running it.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Lost the perspective on balance. And so I think the changes we made in the first quarter of 22 and sort of resetting the book to a much more balanced book that has lots of different flavors of things in it, again, not top down prescriptively, but I think really prioritizing that in a different way and going back to honestly a lot of sectors where we had a lot of domain expertise, where we'd had a lot of success historically, that we kind of got away from because the sex of the high growth internet oriented kind of tech stuff had been so intoxicating, I think, for not only ourselves, but a lot of investors who are attracted to growth businesses that are creating value. We didn't own NVIDIA. It wasn't three stocks that drove the whole portfolio and they're across a number of different industries. And so the breadth that is driving our performance is very lone pine-esque to me and something that we got away from. And that's the mistake, I think.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“We didn't act quickly enough and respond quickly enough to a conversation we were having as well as the market was having at the same time around sort of a different regime from a macro perspective and interest rate perspective and so that was the huge mistake We spent a lot of time internalizing the lessons, studying all the mistakes, points in time when we had this conversation and didn't make change earlier, a year earlier, 18 months earlier and that was the right decision and then the conversation we were having at the time and the decision to move some capital but not enough and not quickly enough and really memorialized I think a lot of that thinking and learning around reinforcing that there are lots of ways to make money in the market and we just got really narrow in our purview I think and lost our”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, as you remember, like it was just kind of the market was down, it was, and it was super quick. And it was like a repriced mechanism that happened very, very quickly. And we weren't quick enough to react. And to the point earlier around believing we owned different bets and payments or e-commerce or software when the regime changed, none of that mattered. And that nuance was lost and they all traded like one stock, right? And so we had too much exposure. We had lost balance in the portfolio. And part of that, I forgive to some extent because the market had been rewarding that for many years prior, but we didn't.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“On a next 12 or next 24 months, earnings or cash flow basis is our valuation support. And the regime changed, I think, very quickly when people started to realize ourselves included that the Fed was behind. And we started having this conversation in the fall of 21, really in the spring of 2021, owning a lot of these businesses that were the leaders. And by the way, with the benefit of hindsight from a 2025 perspective, are the winners, right? A lot of the companies we owned, they were the right ones to own, we just paid too much for them, right? And when the regime changed and it was clear that we were going to need to be getting into a hiking cycle quickly and aggressively, we pivoted but not quickly enough, right? And so we took some of that high growth exposure down that had been some of the most profitable exposure for us on the prior 24 months, but not enough and not fast enough. And so when we came into 2020.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, referencing what I just said about a period in time where the market was consistently rewarding the best positioned companies who had great unity economics but were investing meaningfully ahead of their growth rates. And the market was forgiving and encouraging actually of that level of investment such that many of these companies were funding extraneous things, burning cash. That didn't matter as long as the growth rates were continuing to accelerate and people were comfortable that the underlying unit economics were sound. So what happened, I think, was a lack of accountability around valuation and no near-term valuation support because everyone was looking at multi-year out, normalized margin structures to then discount back and say this is a fair price to pay for inequity. Instead of looking at if something changes and something goes bump in the night.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Around what's let me look back, what's actually informed the decisions that I've made and has helped me make better decisions versus like an input that was one of 10 that didn't actually change anything for me, right?”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“You want to do something, you have to like, you know, it's like a Sophie's choice, right? It's like one of the things that you've already been approved for needs to be sacrificed because then you're going to feel the pain and it's going to really pressure the decision making around solving for the best thing or the best two things, right? Or if you want more resources on a project like convince me why, right, that cultural orientation to me is sort of the business translation of driving down cost of capital or people understanding that there are costs associated with every resource inside of a company and how to think about those in a way that is personal, right? I always say that when we look at our budgets every year for our third party data sources and all the things that our analysts want to use, there's a lot of nice to haves. But what are like the must-haves? And I always say to our management team, what if we made them pay for them themselves? What would they actually keep? And what would they say, you know what, this is a nice have I don't need to have, right? It would actually force different thinking.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I think of it like from the perspective of trade offs in a budget meeting, right? And so in the era of zero interest rates and the market, the public markets for years rewarding growth at any cost, I think the disciplines inside of a lot of companies really went away and everyone was just motivated to find new ways to grow, regardless of the cost. And what is clear in today's era, and you have seen this from a lot of the big platform companies, particularly in the internet space, there is just a new religion around cost where when you sit in a budget meeting or even an engineering meeting and you are putting forth two or three initiatives that you want to get funded, you are being asked how to fund them from your budget, right? Which is just a very different orientation of this is not an open pie that is limitless in terms of dollars that can flow to you.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“We're not doing a good job communicating your business. You don't have good visibility around your business because you are surprising the market every time you speak. Good and bad. That's not like multiple enhancing for your company over time, right? And so that comes from how the internals of how a business is run. What are the incentives? What are the metrics? What's the culture? What's the retention? All of these things, I think, are such important glue that distinguish the better executors from the poor executors.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Long term orientation that I think some companies lose their way around, particularly when you have a lot of turnover and they mount back to people and you have a lot of turnover, incentives get set, whether that's tied to a stock price or the metrics that drive compensation and people's incentives are not aligned, right? And that doesn't promote long-term strategic thinking or orientation that filters down to the culture. So now people are cutting corners. They're trying to make numbers, make budget. That's a very different way to live as a company than it is around. We may miss a quarter, but this is the right investment to make, right? And so companies that I think do a good job of balancing short and long term, one and two, are able to communicate to the market consistent level of execution, right? We joke a lot internally that, and I say this lots of management teams, every time you open your mouth to report your quarter, your stock's up or down 20%. What that tells me is you.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“When you talk to customers and we do this all the time as part of our research, you hear how they are treated and it is different. There's someone for them to pick up the phone and call. Their needs are being met. They don't feel like they're being aggressively raised. Like their price is not being used as a weapon against them. They're being serviced. It's just different. There's, again, back to accountability and sort of a level of operating standard that is the expectation of how things are done. I think the other thing is there's a”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“So I think it's a bunch of things. Number one, there's really clear strategy in terms of what are we focused on, right? I think so many companies have eight different initiatives that are simultaneous and there's a lack of understanding when you talk to people inside of a company of what actually matters. What are we driving towards, right? That's one. Two, there's a culture of accountability and measurement, right? Some companies have it. It seems so obvious, right? People are bonused off of a certain thing. They do forward-looking plans and budgets every year and they hit them or they don't. But there's some companies that are religious about, you know, having those be thoughtful exercises and accountable exercises and ones that are not, right? And I think that shows through a lot. Three is companies who treat their consumers well, whether that's a B2B enterprise, a B2C enterprise.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“DoorDash versus everyone else in that space, basically, right? Uber versus Lyft. And there's so many examples of. Winners and losers getting way more pronounced. And a lot of that strategic decision, a lot of that's leadership, honestly, and execution. And I think those things are all really, really tied together.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I just seen that play out time and time again. And it's interesting in today's actually investing climate with, we've been saying a lot, like with the cost of capital coming back and largely going to 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, which is super exciting, obviously, for us as really actively engaged research oriented investors who both own stocks and short stocks because execution's mattering, right? And the free lunch of the zero interest rates and there's money for everyone almost forever it felt like for many, many years, that era is over. And so you see it across all kinds of categories. And you see, you know, whether it's Boeing versus Airbus or Hermes and LVMH versus carrying in Burberry or, you know, we can go down.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I look at someone like Mercado Libre and what Marcos has built there over time, and the team largely being the same since inception. And like they've executed against competitors who came in and tried to disrupt their markets, who are much bigger, well-resourced, much bigger global companies and defeated them. And I just, there's something to the magic that happens when you have, I think, strong leadership, great teams, you know, a lot of collaboration across those teams and a lot of like ups and downs that everyone experiences together that creates so much resilience.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“More, more just because I've seen so many reps, right? That's the business. We're in the pattern recognition business as a field, I would say. And what's also interesting is to see it across industries, across geographies. Like, you know, we used to be big investors in China many years ago and seeing how a lot of the entrepreneurial businesses there, the 10 cents, the Alibaba has gone.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“On a bunch of different names and introducing them to our talent and all of us getting on Zooms and hashing it out, that's what's really fun about doing this job is that network. And that has surprised me, I think, when I first entered the industry many years ago. I thought it would be more sharp elbowed and competitive. And instead, it's been the exact opposite. And maybe it starts with how we were talking earlier about sector coverage. And my initial Pure Network being outside of the firm. So you sort of find like-minded thinkers or people that you respect or who you think ask good questions in meetings with companies to then have conversations with about the sector. And then that grows up into these become friends. So that's been a real surprise, I would say, about the industry and maybe a little bit of a wander from the question that you ask, but it's one thing I think is super interesting and maybe not really well understood outside in.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't have a target on my wall of XYZ firm or someone's numbers that I'm tracking to say, oh, we did better than that person. It's actually sort of the opposite, which might be counterintuitive, is that I root for a lot of my friends. And when we do work on something and someone else calls us and they own it or they do work on it, we pass and it works and they do well, I think that's awesome, right? We want the industry to do well. We want people who leave our firm and start their own firm to do well. That is good for the industry, right? And that matters. And so I don't have a zero-sum game attitude towards our industry or root against certain people. I really don't. I feel like having done this for a long time, part of what makes us really fun is the relationships of 20 plus years of going to see companies with the same people and exchanging ideas and debating ideas and challenging each other on our thinking and then getting to know their talents, people who work for them who've done the deep dive.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“In some ways, I view our competition honestly as ourselves, we need to be better and do better. And I think that's the bar we hold ourselves to is that we have the unique position of having been around for 27 years, which is increasingly rare in what we do. And obviously being a directional fundamentally oriented public equities firm with duration is increasingly rare at scale, I would say, relative to when I first started in the business. And so I don't think of the pods as our competition. I mean, the market is obviously, we're benchmarked in one of our products. And so that's obviously our competition and how we evaluate ourselves. We had many years of very, very strong performance where sort of hopefully back on that track now with, I think, a lot of learnings and a lot of insights from mistakes we've made and a lot of growth that we've all experienced as an organization. And so I don't.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“It's so funny because the firms that we're always lined up against in the press are some of my closest friends, and none of us view it competitively at all. In fact, several former guests on your show are super close friends of mine”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“The fact that there's always more work you can do, but the companion skill to that is knowing when you know enough to make a decision, right? Because I think you can get into analytical paralysis around like there's more to do, there's more to do, there's more to do, and like we're in the decision-making business, right? And so that balance of curiosity and pursuit of knowledge and learning and growth, the self-awareness to admit when one is wrong, which is an incredibly important part of what we do. And the willingness to take some level of risk or offer some kind of contrarian thinking that often can position us really well to make money.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I look for a couple things. It won't surprise you to hear that I love hiring competitive athletes who have competed at a high level. I don't care the sport. It could be an instrument. That's great too. But people who understand hard work, failure, disappointment, achievement, what that all feels like, two, people who have had to juggle things in their lives, right? So they had to work a couple jobs while they were in college. some sort of misfortune in their life, you know, a relative, a sibling, a something that's happened to them that they've had to pick themselves up and work through. People who are interested in lots of things because they're curious, right? People who love to learn. That is ultimately, we said this earlier, like foundational, I think, for being successful in this job is never being complacent and thinking that you know more, but recognizing and being humbled by”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I say all the time that what I can glean from a 30 minute interview is pretty limited in terms of someone's ultimate ability to do this job well. So that's all we have a summer internship program for MBAs because it gives us kind of eight to ten weeks to evaluate them and vice versa, right? figure out if there's a fit how this person works They think. So for me.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Huge focus, big bets, willing to be wrong and pivot quickly when realizing that they are wrong It's knowing when to be bold and when to be humble. Attracting, challenging, you know, motivating a really talented organization Vulnerability”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, sit down and kind of hash it out. And then, like, usually, if you're effective, you walk out, and like he puts the order in, right? Just turns around at his little desk and puts the order in. And so I go on to talk to him about the gap. And I said, hey, I want to talk to you about the gap. And he's like, it's a short, right? And I was like, I actually think it's pretty interesting. And he's like, he makes a face like, are you crazy? And so I walk him through my thinking. And he's like, ask me a bunch of questions. And it's a 20, 30 minute conversation at the end. He looks to me and he's like, yeah, that makes sense. And he turns around and just writes order. And I was like, okay, maybe I actually know something because he knows more about this whole space than anybody on the planet in our world, you know, who's living and investing actively at that moment in time in the public markets. And like, I just convinced him. And then it ended up being right, which was great. But more importantly, I think just the confidence to come in and”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Being at Lone Pine, the person who had been working most closely with him on consumer left the firm to start his own firm, and Steve comes into my office and he says, all right, so you're taking over all the stuff, you know, retail, luxury, all the hotels, casinos, all these things, and we'd be working mostly with me. And I was like, okay, this is super exciting and super intimidating. And I remember a few years into working with him, There was something, I forget, I think it was the gap. Glenn Murphy was running it and he was in the process of turning it around at the time. And I'd done a bunch of work on it. It was a pretty controversial idea because people thought the gap was sort of a mature business and the brands were all starting to lose market share and so forth. And I went into his office. And the way things work with Steve when he used to be a portfolio manager was it was sort of a conversation. There wasn't a memo. There wasn't a deck that you put together and presented to an investment committee. You'd go into his office and say, hey, I want to talk to you about X.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, it's funny, like, I think it takes a while in this field to figure out if you're any good at it, right? And so in the first handful of years that I worked in public markets, I definitely got more things right than wrong, but I wouldn't say I came out of that feeling like I got this, right? When I got to Lone Pine, I was super excited about being in a culture of excellence and a culture of research. That was really what drew me to the firm. And I knew Dave, because we overlapped on a bunch of investments when I was in prior firms, we shared meetings and wanted to see companies together and really got to know each other and figured out that we thought about the world in a pretty similar way. And were attracted to the same types of industries and companies. When I got to Lumpund, I worked a lot with him and Steve was obviously sort of this super impressive, you know, figure who loomed large over the research department given obviously his tenure and his success. And about a year into”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“That was so seminal and it becomes so almost toxic by the time I was finishing high school to something that was such a gift of, and some of my closest friends in the world came from that experience. My best friend on the planet, when we were seven, she played at Yale, I played at Harvard. So there's so many things tennis has given me and has shown me so much about kind of the kind of person I want to be and taught me so many lessons about not just competing, but independence and hard work and all the things that I would like to instill in my daughters come from that experience and then allowing it to become something else for me.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“I applied to Harvard early. I was lucky enough to get in. I got recruited. And I played basketball from my high school and softball from my high school because I love sports and I love to compete. And I went to college with a very different orientation, which was, we'll see how this goes, right? Like I don't know how I'm going to play. I don't know how I'm going to feel. I don't know how being on a team is going to feel relative to being such an individual sport. And it's a great story for me about just seeing something different from an experience, which was it really became about the team. Like my freshman year, we were terrible. I played first singles. We were last in the Ivy League. I lost most matches that I played. So as did we as a team. And it really became about rebuilding the team and the camaraderie of the people on it that provided me such enjoyment and so much fun and such an important part of my college experience. And so tennis became for me something very different in college I didn't think was possible. And so I saw the opportunity to reshape something from myself.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“And so I didn't want to go to Nationals that summer. And I said to my mom, I'm just done. I don't want to go. I don't, I'm done with the sport. Like, I can't play anymore. I don't want to do this. And she said, I've never made you do anything in your entire life, but I'm actually going to make you go because you've worked so hard for the last 10 years at this sport and spend so much time and put so much of yourself into it. Let it do something for you. It's going to get you into college. And if you never want to play again, that's fine. But like, I'm going to make you go. And I went and I kicking and screaming, but I did. I went and I played and I got home from the tournaments and, you know, our cassette tape was broken from all the coaches that had left messages, which was super exciting. And then I literally did not pick up a tennis racket for my entire senior year of high school.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“And at the time, the NCAA rules for tennis, I'm not sure if they've changed because now they're different, I feel like, for every sport, but coaches weren't allowed to call you until July 1st every junior summer. And I'll date myself by saying that we had an answering machine with a cassette at the time.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Indirectly, yes, I would say wasn't in a match or in a particular setting, but Burnt out in junior tennis. So I started playing nationals when I was 10 years old. I played every summer until I went to college. Most weekends were spent traveling to tournaments around the tri-state area, Thanksgiving, Easter Bowl, every summer. It was a lot. And I think they've since scaled back. I don't think they have the tenant under category anymore, but they did then. And when I got to my junior year, the end of my junior year of high school, I was just done. Like I just was so burnt out. I didn't really want to practice for three hours every day after school. I was interested in other things. I was interested in school.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“So I had very high rankings when I was very young. And that pressure of being seated in a tournament, right? You go to a tournament and you're the first seed and it's like everyone's gunning for you, right? That's anxiety provoking for sure.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, when expectation comes along, right? When you realize you're actually good at something or could be good at something or have potential, right? And so.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“And then I beat whoever I played, and that moment of winning and internalizing that I now had access for myself to the backboard for the next 20 minutes until the next person was gonna challenge me was something that made me feel very energized and excited. And a feeling that I wanted to replicate”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source
“My sister will laugh at this if she listens to this. So I was probably six years old and my parents belonged to like a little pool club at our town and they played tennis and I had started to play and didn't take lessons and wasn't allowed to take lessons until I was older. But the way to be able to play on the backboard at our little pool club was there was competition. You get the access to the backboard, you had to beat the people who were waiting around to play in the backboard. And so I figure this out and I'm watching these two boys who are, I think like 10 or 11 play each other and whoever wins gets to practice for 20 minutes and someone else, the next person gets to challenge them. And so I'm like, I'm going to challenge this person.”
2025-03-11 · Invest Like the Best · Kelly Granat - Investing At Lone Pine - [Invest Like the Best, EP.414] · IDENTIFIED FROM THE TRANSCRIPT · source