Hermes, LVMH and Christian Dior

[BigFatWhale]

With great price inelasticity characteristics, the luxury bags are not only a fabulous gift but also an ideal investment that would boost our investment returns. Just as with diamonds, the Hermes and Diors would form a great friendship bond with most women.

The luxury goods industry is likely to see a revival back to single-digit growth based on estimates by Bain and Company and Statista.

On the whole, the industry has been resilient to most market shocks through the past 5 years.

We have touched on 3 brands that are known to not have any price discount, it shows their positioning as the best of the breed- Hermes, LVMH and Dior.

Based on the valuation, we feel Dior is trading at a reasonable price and it is showing good growth momentum based on the latest FY figures. For Hermes and LVMH, we have to be patient and wait for the right price rather than making an impulse buy.

For the coming Valentine's Day, you could look into gifting a Dior share instead of the bag to your loved one. Hope it sits well with this gesture.

Here is the link to the Full Article:

https://thebigfatwhale.com/investing-in-...ag-brands/

[CY09]

The unique thing about Dior and Hermes bags are that they appreciate in prices too (think of the luxury watch segment).

They operate at the same model where to get hold of the one vintage series, you need to buy other models or is a big name person. And unlike luxury watches which uses distributors, some of these luxury bags control this segment of the supply chain by having their own shops

[BlueKelah]

With great price inelasticity characteristics, the luxury bags are not only a fabulous gift but also an ideal investment that would boost our investment returns. Just as with diamonds, the Hermes and Diors would form a great friendship bond with most women.

The luxury goods industry is likely to see a revival back to single-digit growth based on estimates by Bain and Company and Statista.

On the whole, the industry has been resilient to most market shocks through the past 5 years.

We have touched on 3 brands that are known to not have any price discount, it shows their positioning as the best of the breed- Hermes, LVMH and Dior.

Based on the valuation, we feel Dior is trading at a reasonable price and it is showing good growth momentum based on the latest FY figures. For Hermes and LVMH, we have to be patient and wait for the right price rather than making an impulse buy.

For the coming Valentine's Day, you could look into gifting a Dior share instead of the bag to your loved one. Hope it sits well with this gesture.

Here is the link to the Full Article:

https://thebigfatwhale.com/investing-in-...ag-brands/

The sector is doing well for past years post covid correction and I reckon its already at its peak. as you can see their stocks has already doubled post covid. Risk of downside in case of any recession or economic slowdown with FED and other CBs tightening is much higher now, and one would likely be buying too high even for

[weijian]

Luxury brands demand heritage. So it is sexy to have the family owning the company for generations (even though the wolf of Cashmere didn't really started all these brands...)

LVMH’s Arnault trying to head off succession battle

Through a series of moves over the past year, many of which have escaped public attention, Arnault has laid the groundwork he hopes will prevent such an outcome for his own family empire. At the heart of the plan is a new holding company, control of which is split equally among his five children. It already has power to influence major decisions affecting the luxury goods group. This is the vehicle the patriarch hopes will prevent divisions among his heirs and ensure LVMH Moet Hennessy Louis Vuitton SE will remain under family control for decades to come.

https://www.businesstimes.com.sg/working...ion-battle