I’ve been investing in tech and engineering stocks for years, paying little attention to other industries. I was always drawn to the excitement and innovation of the tech sector, and I felt like I was missing out on the next big thing if I wasn’t invested in the latest startups or cutting-edge technologies.
But lately, I’ve realized I’ve missed great investment opportunities outside of tech. One company that I regret not paying more attention to is Louis Vuitton Moet Hennessy, or LVMH for short.
It owns some of the most iconic brands in fashion, including Louis Vuitton, Christian Dior, Fendi, and Givenchy, as well as champagne and spirits brands like Moet & Chandon and Hennessy. Despite being a household name in the fashion world, LVMH’s stock has flown under my radar for far too long.
- Fashion and Leather Goods: Louis Vuitton, Dior, Fendi, Loewe, Celine, Kenzo, Givenchy, Marc Jacobs, Emilio Pucci, JW Anderson, Rimowa, Berluti, Loro Piana, and Moynat. - Perfumes and Cosmetics: Parfums Christian Dior, Guerlain, Givenchy Parfums, Kenzo Parfums, Benefit Cosmetics, Fresh, Make Up For Ever, and Fenty Beauty by Rihanna. - Watches and Jewelry: Bvlgari, TAG Heuer, Hublot, Zenith, Tiffany & Co., Chaumet, Fred, and De Beers. - Wines and Spirits: Moët & Chandon, Veuve Clicquot, Krug, Dom Pérignon, Ruinart, Mercier, Château d'Yquem, Hennessy, Glenmorangie, Ardbeg, Belvedere, and Volcán de mi Tierra.
In retrospect, I can see that my bias toward tech and engineering blinded me, and I failed to recognize the value of a company like LVMH. While tech companies may be known for their fast growth and disruptive innovation, luxury brands like those owned by LVMH have a different kind of appeal that is no less valuable. Many luxury brands have demonstrated remarkable resilience and brand power even during economic downturns. So the Sephora stores you see, guess who owns it? Most of the skincare routine products I use are owned by LVMH. Yeah, big-time regret.
Furthermore, LVMH has a strong track record of financial results and increasing shareholder value over time. In 2021, LVMH reported a 32% increase in revenue and a 64% increase in net profit, driven by strong demand in Asia and a rebound in the US and Europe following pandemic-related disruptions.
As someone who’s been focused on tech and engineering, I’m admittedly late to the game when it comes to investing in LVMH. But better late than never, right?