Well, this definitely confirms my gut feeling about investing in companies who own ultra premium luxury brands.
The reporter definitely got the right idea.
LVMH also owns Hennessy, Moet Chandon (including domain Chandon), and De Beers (which in turn owns 80% of the diamond market). Richemont group owns a lot of the premium watch companies including Panerai.
The biggest market for these ultra premium goods right now is greater China (including Ferrari, Bentley and Rolls Royce), and of course old money.
"While many on Main Street are struggling, companies that sell to the biggest spenders–from Tiffany & Co. to Cartier and Louis Vuitton to Remy Cointreau–are having themselves a merry little Christmas.
Luxury sales are surging here and abroad. Profits are widening. And stocks are flying high."
Original WSJ article here.
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