LVMH: An Investment Opportunity After It Fades from the Spotlight

Good news is bad news and bad news is good news.

LVMH is a good stock but it has always been too expensive to buy. The situation became even more challenging when Bernard Arnault was crowned the wealthiest person by Forbes. Approximately one month later, on May 12, 2023, LVMH's stock reached an all-time high of €902.90.

However, following reports of a slowdown in China and lackluster sales in the United States, LVMH's stock price has declined by approximately 21% from its all-time high. Given the increasing stream of unfavorable news surrounding luxury brands, now is an opportune moment to consider LVMH as an investment.

LVMH stands as the largest luxury conglomerate globally, renowned primarily for its iconic label, Louis Vuitton. However, its expansive portfolio extends across various domains, encompassing fashion, leather goods, watches, jewelry, wines, spirits, fragrances, and cosmetics. With an impressive collection of 75 distinct brands, many of which are likely to be instantly recognizable to you:

Bernard Arnault was neither the founder of Louis Vuitton nor Moet and Hennessy. But he played a pivotal role in orchestrating the merger of these two companies, leading to the creation of LVMH in 1987. Subsequently, he acquired a controlling interest by outmaneuvering other stakeholders.

I like luxury companies because of three reasons.