The King of Luxury | Bernard Arnault & LVMH w/ Christian Billinger (TIP645)

Clay is joined by Christian Billinger to discuss Bernard Arnault, LVMH, and the broader luxury industry. 

Christian is chairman of Billinger Förvaltnings AB, which invests in publicly listed equities. The firm seeks to generate attractive long-term total returns in real terms without employing financial leverage. Christian previously covered European equities for Cheyne Capital, Gartmore, and GAM in London.

IN THIS EPISODE YOU’LL LEARN:
00:00:00 - Intro
00:01:03 - Bernard Arnault
00:11:37 - Investing in LVMH
00:13:47 - Business Overview
00:28:39 - China
00:34:25 - The Luxury Strategy
00:48:23 - Succession Plans
00:51:23 - Capital Allocation
00:53:49 - Valuation
00:58:10 - Cyclicality
01:01:35 - Risks

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[Elinversordeapie]

As european, I confirm the really quality business: LVMH, Ferrari and Hermès. Thanks a lot for share the information.

[franciscouderq]

Note:

All five children—Delphine, Antoine, Alexandre, Frédéric, and Jean—have official roles in brands controlled by Arnault, along with his niece Stephanie Watine Arnault.[52] Alexandre is the EVP of Tiffany & Co., Frédéric is the CEO of LVMH Watches, [53] and Jean is the Director of Watchmaking Marketing and Development at Louis Vuitton.[54] Since 2010, Arnault's daughter Delphine has been with Xavier Niel, a French billionaire businessman active in the telecommunications and technology industry. Effective February 1, 2023, Delphine is the chief executive officer of the luxury brand Dior.
No problem of succession like in many Northern france wealthy families the show MUST go on.

[TheMihaeli]

Great overview of the company, helped me allot .

[KamilMauel]

Like the idea to analyze the perspective (at least so far) stocks/industries that for some reason have found themselves in the bear area. LULU, SBUX and LVMH now.
Wondering what kind of cyclicality exist on the luxurious stocks? The common knowledge is their customers don’t suffer during the economic downturns. Indeed the LVMH/s revenues and earnings remained flat in 2008. However the stocks fall more than the overall market. A misery occurred in the 2011-2016 when the price went nowhere following financials. Seems it is back again. 6 quarters of underperformance yet now more thanks to the over-rally in the recent years than other numbers.
Are those examples of the industry cycle downswings?