19 July 2024
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What we can learn from James Packer

Peter Switzer
8 July 2024

What the wealthiest people are always in the market for are ways to keep building their wealth, while at the same time preserving what they have. For that reason, I’ve always kept myself open to heed what the wealthy might know that can give insights to others to build their wealth.
It was because of this that I was interested to read in the Daily Telegraph over the weekend the latest on the rise, fall and rise of James Packer. His ups and downs in business seem to parallel with the ‘ups and downs’ of the kilos he totes around, which he discussed in this interview. Right now, he seems to be in a good space for his well-being and his family, who now reside in LA.
Talking to Ben English, the Telegraph’s editor, James shared his take on the world’s most successful company and recent times, and how it has seen its share price spike 196% in one year! Not that he needed more wealth, but the May 2023 calculation of his richness came in close to $5 billion, putting him at Australia’s 18th richest. However, in 2006 and 2007 he was number one. Clearly, the Crown Resorts blow up hit him, but it wasn’t “for a six!”
By the way, I recently was asked to check out his dream of Crown at Barangaroo and it certainly showed that having too much money hasn’t badly affected his vision of what measures up as a quality production. It’s an asset that Blackstone (Crown’s new owner) would be happy to have picked up since the trials and tribulations for the former major owner of Crown.
Talking about his latest results in the world of money, Packer told English the following: “I’ve had some wins on the business front for the first time in a long time. I have a wonderful business adviser, Daniel Nadler, he is a genuine polymath, and he is an expert in AI. Read his Wikipedia and you’ll see what I mean! In truth, the only reason I’ve had some wins recently is because I’ve taken his advice.
“He hosted the AI panel at Davos two years in a row and is a Harvard PhD. He was going to be an academic and he had received tenure at Stanford for a prestigious position but became a serial entrepreneur instead along the way.”
Nadler owns a company called OpenEvidence, which has a goal to have the best database for healthcare information in the world.
Nadler also runs a fund and given his expertise in AI has been long chipmaker business Nvidia. This chart shows you why James Packer has done nicely by its share price surge this year.
To be precise, a year ago, Nvidia (pronounced “En-vidia”) was a US$42 stock. Now it’s selling for US$125.83!
So, what does Nvidia do? And what’s its link to AI?
Nvidia designs and manufactures Graphic Processing units for gaming, cryptocurrency mining and professional applications, as well as chip systems used in cars, robots and other business processes.

Nvidia Corp

Wikipedia says: Most GPUs are designed for a specific use, real-time 3D graphics, or other mass calculations:

• Gaming. GeForce GTX, RTX. Nvidia Titan. ...
• Cloud Gaming. Nvidia GRID. Radeon Sky.
• Workstation. Nvidia Quadro. ...
• Cloud Workstation. Nvidia Tesla. ...
• Artificial Intelligence training and Cloud. Nvidia Tesla. ...
• Automated/Driverless car. Nvidia Drive PX.

The company is seen as the greatest recipient of all the pluses that are expected out of AI. That’s why its share price has gone through the roof.
This was Packers’ take on Nadler’s view of the founder of Nvidia: “Daniel believes that Jensen Huang is probably the best CEO in the world, and he has been saying that to me for two years. As I said, the money I have made on the markets is because I believed in Daniel’s expertise, and I put it in a fund that he runs for me”.
The fund is up 90% in eight months, which partly explains why James Packer might be on another rising era in his life.
On the subject of AI and Nadler’s view on how it will underpin Nvidia’s rise and rise on the market, Packer told Ben English the following, which is something I find hard to ignore: “I was watching a clip on TikTok this morning where Bill Gates said about AI: ‘We’re seeing a fundamental advance as important as anything in the history of digital technology’.”
And it’s why I think this run for US stocks, which is being driven by the expectation of lower interest rates and AI, still has at least another year or more to go.

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© 2006-2021 Switzer. All Rights Reserved. Australian Financial Services Licence Number 286531. 
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