Excellent deep dive, Daniel! The connection you pinpointed between family ownership business and long-term strategy, is exactly what I am looking for as a dividend investor. The only flaw from this company, I would say, is.... its price!!! :) above €2000! which for sure makes it not affordable for most of retail investors, they should definitely consider a stock split to be honest
Thank you for your kind feedback! I suspect that the family wants to attract quality shareholders (see book: Quality Shareholders by Lawrence Cunningham), and therefore might not even be interested in reducing the value of the shares. For retail investors, of course, it would make sense!
Excellent article Daniel! This company is so mesmerising, for us as investors and as consumers. You can only have reverence for the family and the legacies that have built what is one of the greatest business in the world.
Great writeup, you may be right on valuation and price may continue to rocket, the kind of unsatisfied demand they have is just unmatched (maybe only by Ferrari). I have owned it since 2015 but I have been trimming recently (wrongly so far).
Hey Greg, thanks for the kind feedback! What’s the reason behind your sales — do you see any fundamental weaknesses, or is it purely due to the high valuation?
Purely the valuation and I have enough stable names, wanted to go a bit more aggressive when the market went down earlier this year. I think there are no obvious fundamental weakness outside of the fashion risk, which is low but not non-existent.
Hi Kev, thanks for your comment! I actually share your view in general. That said, I wouldn’t put Hermès in the same category. With its focus on ultra-high-net-worth clients and its disregard for short-term fashion trends, the company stands apart from most consumer discretionary names. This is also reflected in its ability to continue growing even during past crises — a clear contrast to many of its peers.
Excellent deep dive, Daniel! The connection you pinpointed between family ownership business and long-term strategy, is exactly what I am looking for as a dividend investor. The only flaw from this company, I would say, is.... its price!!! :) above €2000! which for sure makes it not affordable for most of retail investors, they should definitely consider a stock split to be honest
Thank you for your kind feedback! I suspect that the family wants to attract quality shareholders (see book: Quality Shareholders by Lawrence Cunningham), and therefore might not even be interested in reducing the value of the shares. For retail investors, of course, it would make sense!
Excellent article Daniel! This company is so mesmerising, for us as investors and as consumers. You can only have reverence for the family and the legacies that have built what is one of the greatest business in the world.
Really appreciate your kind feedback – thank you!
Great writeup, you may be right on valuation and price may continue to rocket, the kind of unsatisfied demand they have is just unmatched (maybe only by Ferrari). I have owned it since 2015 but I have been trimming recently (wrongly so far).
Hey Greg, thanks for the kind feedback! What’s the reason behind your sales — do you see any fundamental weaknesses, or is it purely due to the high valuation?
Purely the valuation and I have enough stable names, wanted to go a bit more aggressive when the market went down earlier this year. I think there are no obvious fundamental weakness outside of the fashion risk, which is low but not non-existent.
I would be very careful with consumer discretionary stocks these days.
Hi Kev, thanks for your comment! I actually share your view in general. That said, I wouldn’t put Hermès in the same category. With its focus on ultra-high-net-worth clients and its disregard for short-term fashion trends, the company stands apart from most consumer discretionary names. This is also reflected in its ability to continue growing even during past crises — a clear contrast to many of its peers.
Our pleasure. Maybe I should add it to my watch list then.
Female stuff is my sector. Jewelry, cosmetics, Victorias Secret. Etc.