Here’s how James Packer made $500 million from investing in shares this year

Half a billion dollars on paper in a single year… How did James Packer do it?
The post Here’s how James Packer made $500 million from investing in shares this year appeared first on The Motley Fool Australia. –

Business magnate James Packer might be most well known for his success in Crown Resorts Ltd (ASX: CWN). But, the last year has shown Packer’s ability to make a pretty penny in tech shares as well.

The Australian billionaire tends to make his investments through the private company known as Consolidated Press Holdings (CPH). In fact, Crown Resorts’ largest shareholder is Packer via the CPH holding company. However, the gaming and entertainment group played less of a role in the monumental $530 million profit that CPH booked in the last financial year.

Instead, the bumper profit was beefed up by investments in various tech names.

Tech shares deliver for Packer’s pocket

According to documents obtained by The Australian, James Packer’s CPH pulled a profit that puts it among one of the biggest for an Australian private company in FY21. This result is a positive contrast to the $400 million paper loss recorded by CPH in the previous financial year — but what helped the billionaire’s net worth?

In FY21, the assets held on the balance sheet of CPH rose $480 million in value. The company also cashed in on $114 million worth of various assets during the period. This allowed Packer to pay himself a considerable $111 million dividend from his company.

A large chunk of the returns was from Packer’s investment in a number of technology shares. Examples of this include the Southeast Asian real estate marketplace PropertyGuru. The fast-growing business is set to list on the Nasdaq for US$1.8 billion.

In addition to this, it is believed Packer has around $100 million invested directly in the venture capital firm, Square Peg Capital. This gives the Aussie business persona exposure to tech startups such as Airwallex, Canva, Fiverr International Ltd (NYSE: FVRR), and Stripe.

After listing in 2019, the share price of Fiverr soared more than 200% during the last financial year. Although, possibly one of the most successful startup investments in 2021 was graphic design platform Canva.

The Sydney-based company blew minds with its flying valuation — from ~US$6 billion to ~US$55 billion in the space of 12 months.

Not Packer’s first rodeo

James Packer’s foray into investing in ‘tech’ shares is not his first. Throughout the 2000’s, he hit some home runs within the emerging online classifieds space. In 2003, Packer invested $33 million in SEEK Limited (ASX: SEK), giving him a 25% stake in the company at the time. He went on to sell his $33 million investment in the job advertisement platform for $440 million.

Similarly, in 2005 Carsales.Com Ltd (ASX: CAR) caught the eye of the businessman. As a result, the Packer family acquired a 41% stake in the company for $100 million.

For reference, Carsales today has a market capitalisation of $7.08 billion.

The post Here’s how James Packer made $500 million from investing in shares this year appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Will its energy expansion drive the Telstra (ASX:TLS) share price to new heights?

The Kogan (ASX:KGN) share price has suffered 4 52-week lows in the past week. Here’s why

Carnaby (ASX:CNB) share price rockets 33% on lithium update

Why is the Hazer (ASX:HZR) share price getting tasered today?

IDT (ASX:IDT) share price swings as CEO lauds mRNA tech in fight against Omicron

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK Limited and Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!