Kerr Neilson: This opportunity will drive the next decade of growth

Originally from South Africa, Neilson landed on Australian shores in 1983 where he joined the ranks of Bankers Trust. BT was on the rise and Neilson stood out among the pack. After just two years, he was placed in charge of the retail business. Under his leadership, it became the growth engine of the firm managing money around the globe.

BT’s mercurial handling of the 1987 crash saw Neilson’s retail arm of the company hit its stride, garnering billions of dollars to manage. Stellar performance and a growing reputation as a canny operator saw Neilson build a name for himself. 

Counting George Soros’ Quantum Fund among its original investors, Platinum got off to a flying start. Pitching itself as a global investor, the company powered through the next decade reaching $26 billion of funds under management. In 2007, Neilson and his team decided to float Platinum. It was good timing, with the market nearing a peak before the Global Financial Crisis.

Neilson ran Platinum for another decade before handing the reins to Andrew Clifford. In 2022, he decided to depart the Platinum board, ready for the next part of his journey.

In this episode of Success and More Interesting Stuff, Neilson shares some of the major moments that shaped his career trajectory, some of his biggest wins during this time, as well as why his inventive ancestors taught him the "importance of being in the game - whatever the new game is" - and right now, he believes that is AI. 

He also addresses some of the major changes that he hopes are on the horizon for Platinum investors - and shares why he still believes he has a responsibility to shareholders even after all this time. 

Note: This interview was recorded on Thursday 8 February 2024. 

Timecodes 

• 0:00 - Intro 
• 1:55 - From South Africa to Sydney 
• 6:58 - Kerr's ancestors: A family of engineers 
• 9:59 - AI is the fourth industrial revolution 
• 12:45 - Kerr's first experience with investing 
• 14:02 - Kerr's university life - and on being in a "hurry" 
• 15:44 - Stories from his time in the UK...
• 17:29 - And more from his time working in broking in South Africa 
• 20:01 - A deep dive into Kerr's time at Bankers Trust 
• 26:29 - Black Monday and how BT steered investors through it 
• 31:07 - Travelling the world to find undervalued stocks 
• 34:45 - Avoiding the bust in Japan 
• 36:34 - On always striving to improve his portfolio 
• 36:59 - AI has extended the lives of the Magnificent Seven
• 38:58 - Why Kerr left BT 
• 41:29 - On meeting George Soros in Latin America 
• 45:38 - Inflation's impact on markets (and companies) 
• 46:57 - The early Platinum days 
• 49:03 - Listing Platinum in 2007 at the market's peak 
• 51:06 - Change is on the horizon for Platinum shareholders and investors
• 52:45 - How Kerr's investing differs from the Platinum approach 
• 55:29 - Where Kerr sees value today within Asia 

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