The Intrinsic Value Podcast - The Investor’s Podcast Network TIVP027: LVMH (MC): Investing in True Luxury w/ Shawn O’Malley & Daniel Mahncke
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Jul 6, 2025 Discover the fascinating journey of LVMH, the luxury empire that boasts brands like Louis Vuitton and Tiffany. Explore how Bernard Arnault built his conglomerate with a ruthless vision of true luxury, emphasizing the importance of heritage and craftsmanship. Delve into the strategic comparisons with Berkshire Hathaway and learn about the complex dynamics of the luxury market. Plus, uncover insights into potential discounts on LVMH shares and whether the stock is fairly valued in today's market. A must-listen for aspiring investors!
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Luxury Pricing Paradox
- True luxury brands increase attractiveness with higher prices, signaling exclusivity and status.
- Reducing prices lowers appeal, making products feel less exclusive and premium.
Heritage as Luxury Moat
- True luxury brands have enduring heritage which acts as a moat.
- This heritage cannot be quickly created; it takes decades to cultivate.
Luxury Beyond Functionality
- True luxury transcends functionality; price signals taste and wealth, not utility.
- Products often become status symbols or investments in social identity.
