The Psychology of Buying Luxury Items: Choosing Price Over Practicality

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The choice of buying luxury items says something about a person's taste and financial status
Luxury items may not necessarily be more practical or useful than more affordable options
The price of luxury items can be significantly higher despite offering similar or lower utility
Handbags also follow the same trend of luxury pricing despite offering similar basic functions

We tell the full history of LVMH, and how Bernard Arnault turned a $15m investment in a bankrupt French textile company into the world’s largest individual fortune. It’s a story that’s equal parts Berkshire Hathaway, Steve Jobs and Barbarians at the Gate… and wholly under-appreciated for the genius business model innovations that enabled it. Whatever industry you operate or invest in, there’s so much to be learned from Bernard and LVMH’s complete reshaping of the luxury sector over the past three and a half decades. And oh yeah, it also involves Nazi spies, Italian family murders, Rupert Murdoch, Rihanna becoming a billionaire, Jay-Z’s champagne feuds and Beyoncé wearing a 128 carat diamond. Tune in! :)

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