David Paradice, Founder of Paradice Investment Management

Our special guest is one of Australia’s legendary stock pickers, Mr David Paradice AO, the founder of Paradice Investment Management.  

The Paradice Investment Management team manage a phenomenal amount of money - around $17 billion in assets under management. Its namesake founder, David Paradice AO, is so passionate about his craft.

In this deep dive, David shares his experiences on just about everything from growing up in Scone in the Hunter region, boarding school, trying to find a job, how he made his way into the public markets, building a funds management business, his team, his love of picking stocks and the small cap sector, meeting with management, doing the work and how there is no “short cut” and his current views on the markets.

He also shares his thoughts on why he learns from Warren Buffett but doesn't follow him - they have their own way of doing things including going out and picking the stocks, doing the numbers, working out if something is cheap or expensive and then having a real crack at it!

Plus we hear first-hand about his love of giving back, the game of Polo, including meeting the Queen and of course, family. 

Timestamps

• 0:00 - Intro
• 4:03 - Tales from growing up on a 150 acre farm just outside of Scone, NSW
• 10:37 - Paradice's first role as a research analyst at a stock broker, investing through the 1987 crash
• 15:38 - The pressure of managing others people’s money
• 17:59 - Paradice's five-year stint managing small caps at Mercantile Mutual/ING Group + Why company visits are not a chore
• 19:34 - Why Paradice decided to go out on his own despite the knock backs
• 23:09 - The super funds that have supported Paradice IM + How the Paradice team's culture has evolved over time
• 27:17 - What company visits reveal to stock pickers and analysts + Why Paradice wants to take inspiration from Warren Buffett but not follow him
• 30:33 - Why Paradice respects businesses and funds who cap their returns + Is managing too much money a bad thing?
• 33:21 - Should portfolio managers be generalists or sector specialists?
• 36:12 - How Paradice and his team approached the 2008 GFC + how they make a decision on when and what to deploy cash into
• 42:39 - 'Part of the skill is sticking to the right stocks so that your performance doesn't get belted during the bad times'
• 44:40 - A good investment can be expensive - but if they grow at 30-40%, it's warranted
• 46:26 - Receiving the Order of Australia for philanthropic services
• 48:50 - How Paradice's selection of funds has grown over time + Why doing the work, even at the earliest hours, is what makes the difference 
• 51:28 - Current market views: Trump, Musk, China, growth, commodities, themes
• 57:32 - Commodities, threats with AI, gold, bitcoin, silver
• 1:01:53 - Working with Geoff Wilson's Future Generation, supporting the Taronga Zoo Foundation, and other charitable pursuits
• 1:06:01 - Health, work and life balance, trust, love of polo, teamwork, the Queen

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Paradice Investment Management

This material represents only the views of David Paradice and is not intended, and may not, represent the views of Paradice Investment Management Pty Ltd (ABN 64 090 148 619, AFSL No. 224158)(Paradice) or any of its investment teams. The information is of a general nature only and was current only at the time of initial discussion.  This material (or contribution to it) is not intended to constitute advertising or advice (including legal, tax or investment advice or security recommendation) of any kind. Where this includes reference to securities, Paradice may have a relevant interest in securities mentioned therein.

Returns are not guaranteed by any person and reference to past performance is not an indicator of future performance.   You should consider your own needs and objectives and consult with a licensed financial adviser. 

The information and opinions contained herein are not necessarily all-inclusive and, as such, no representation or warranty, express or implied, is made as to the accuracy, completeness or reasonableness of any assumption contained herein and no responsibility arising for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Paradice, its officers, employees or agents.