What is better than fashion? Investing in fashion! What is better than Louis Vuitton bag? Shares of LVMH!
LVMH Moët Hennessy Louis Vuitton SE, better known as LVMH, is a French multinational luxury goods conglomerate. Headquarter of LVMH is of course in Paris. The company was formed in 1987 under the merger of Louis Vuitton with Moet Hennessy. LVMH controls some of the world’s most recognized luxury consumer companies and prestigious brands. The oldest of the LVMH brands is wine producer Château d’Yquem, that was founded back in 1593.
So why do we think buying stocks of LVMH Moët Hennessy Louis Vuitton SE is a good idea?
- Cool brands
LVMH is all that we love about brands. Starting from luxurious Louis Vuitton, Fendi and Marc Jacobs for example. But such brands as Pandora and Sephora also belong to them. The fact that your new pair of earrings or shoes will do good for your own stocks is also pretty cool!
- Diversifying the business
LVMH is exploring new markets and possibilities. Recently it express interest in buying the brand from India – Baba Ramdev-led Patanjali Ayurved. According to Economic Times report , L Catterton private equity fund (co-owned by LVMH) is ready to invest $500 million. This is about a half of its remaining Asia fund. Diversify and conquer!
We simply love LVMH because the company built a wonderful modern art museum in Boulogne in Paris. Louis Vuitton has also created the Institut des Métiers d’Excellence (the Institute of Metiers of Excellence), which takes hundreds of apprenticeships per year. Cool architecture, nice collection of art objects, flashback to the history of a brand and a place to grow new talents – just what we need.
- Predicted price is above €270
Societe Generale set a €272.00 ($323.81) price objective on LVMH Moet Hennessy Louis Vuitton and gave the stock a neutral rating in a report on Friday, January 12th. Companies as Sanford C. Bernstein and Deutsche Bank set a €270.00 ($321.43) price objective. UBS Group set a €275.00 ($327.38) and Berenberg Bank set a €270.00 ($321.43) price. Which makes it a very interesting stock to buy.
- LVMH. Also owns Christian Dior!
Christian Dior – another legendary fashion brand was purchased by LVMH earlier last year. By bringing expertise and new ideas, LVMH is planning to make CD house even more successful. If you ask, we love Maria Grazia Chiuri, but secretly hope they bring back John Galliano 🙂
To be aware of:
Modern society loves green consumption, believe in eco initiatives and love young independent designers, so if LVMH doesn’t fit in the new world it will have big problems. Modern youth is more and more turning to eco friendly brands and unique goods. Big holdings like LVMH needs to carefully follow trends not to lose their leading position on the market.
HousewifeTrading bought LVMH at 244USD in January 2018..
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