During the GFC, most retailers were forced to deeply discount their products in order to try and survive. Louis Vuitton Moet Hennessey (LVMH), the world’s largest maker of luxury goods, on the other hand did not need to reduce prices by a cent. Such is the power of its brand that Magellan Asset Management decided to add the company to its global portfolio. Here, Magellan’s Vihari Ross breaks down why LVMH is an exception in the retailing space thanks to its economic moat, supply chain, scale, quality management and exposure to well-heeled Chinese consumers. In addition, LVMH’s stock trades at a reasonable price and Vihari sees further upside following the recent acquisition of American brand Tiffany & Co, as she says the iconic engagement ring maker has better prospects of participating in the emerging markets boom by being part of LVMH.
You buy from the world's best companies, so why not invest in them?
Magellan believes that successful investing is about finding, and owning for the long term, companies that can generate excess returns for years to come. To learn more click the contact button below or visit their website.