I’m currently in two minds over this company. Firstly they control roughly 75 brands across various markets:
– Fashion/Retail
– Cosmetics
– Jewellery
– Wine & Spirits
– Tabloid
Each one being of high quality, strong heritage and devoted followers. These brands are well established and are not going anywhere. I also don’t see fashion ever being forgotten, it’s almost written into human DNA with $LVMH being the centre of it.
Management is also solid with the current CEO and founder, Bernard Arnault, having decades of experience guiding the company. Senior management has also been reinforced in the last few years with Bernard’s children taking positions across the various brands and holding co.
On the other hand though I’m struggling to see past the current valuation of the company – share cap circa €400B. It’s sitting steeply. My current portfolio is positioned towards energy, grid management and higher risk companies. Brining in this co would help diversification but goes against growth. The fundamentals are certainly there for $LVMH but I’m very unsure.
Does anyone have any thoughts on the company?
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