LVMH: A stock story that has a ring to it

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.

Видео LVMH: A stock story that has a ring to it канала Livewire Markets