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Hermès or LVMH - why not both?

$RMS (+0,36 %) and $MC (-1,6 %) both stand for luxury, but pursue different success models that complement each other ideally in the portfolio. Hermès impresses with its extreme exclusivity, strictly controlled growth, high margins and exceptional pricing power. The artificial scarcity of products ensures stable demand - even in economically weaker phases. The downside: growth is deliberately limited and the share is usually traded at a high valuation.

LVMH, on the other hand, plays to its strengths through diversification and size. The group combines numerous iconic brands in fashion, leather goods, spirits, watches and cosmetics and benefits more from global consumer and travel trends. As a result, LVMH offers more growth potential, but is also more cyclical and more susceptible to fluctuations than Hermès.

Together, the two stocks form a strong luxury duo: stability and exclusivity meet breadth and economies of scale. For long-term investors, this combination can help to exploit opportunities in the luxury segment and better diversify risks.

How do you see it? Would you opt for Hermès or LVMH - or would you put both in your portfolio?

17 Commentaires

jkb92@jkb92

$RMSas a real luxury and may be on the verge of breaking out to the upside.

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KryX_DE@KryX_DE

@jkb92 I think charting is ineffective. If it were really reliable, anyone could increase their wealth indefinitely.

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jkb92@jkb92

@KryX_DE that's what I said at the beginning. I now also consider chart technology alongside fundamental valuations. Especially if you look at companies with a long-term clean upward trend, I think you can almost no longer ignore it. Certainly less so for smaller momentum-driven stocks... But in the end, everyone has to find their own method :)

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Sansebastian@Sansebastian

@KryX_DE if it were that easy haha. Why wouldn't that work? How do traders earn their money?

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KryX_DE@KryX_DE

@Sansebastian As a rule, they do not earn any money.

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Sansebastian@Sansebastian

@KryX_DE 🤣🤣🤣 You have absolutely no plan!

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KryX_DE@KryX_DE

@Sansebastian If you don't call it a plan to refer to statistics and scientific research, then I don't understand what your plan actually is.

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KryX_DE@KryX_DE

@Sansebastian According to various studies, between 70 % and 90 % of all traders lose money.

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Sansebastian@Sansebastian

@KryX_DE of course 99% are not successful because they trade far too emotionally and without a strategy. Follow on IG e.g. Goldesel, Chartsekte, Dividente_ente. There you can see that traders can be successful. And they use Charttechink. Just because you don't believe in it doesn't mean it doesn't work

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Leon@Investingyoung

@KryX_DE 99% of traders lose money... yes you're right but 99% of soccer players don't become professionals, 99% of all yt videos don't go viral, 99% of all musicians on spotify don't make money.

The statistic that everyone loses money is correct per se, but you can still belong to the 1%

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Leon@Investingyoung

@Sansebastian I'm a chartsekten member, it's great and they know what they're doing

Trading works especially because it is also simple statistics, bet 100x 1€ and have every 3 "bets" a 4€ profit on average the other 2 are losses, make money in the long run. Hit rate of 33%, still make money in the long run

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Voir toutes les 3 autres réponses

Lucas S.@Lucas

It depends on whether you want stability, diversification and solid growth like $MC.
Or higher exclusivity, potentially higher margins/returns but a more concentrated risk like $RMS. Personally, I chose LVMH because of the strong diversification.

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DividendenPapa@DividendenPapa

@KryX_DE I find both $MC and Hermes very exciting. I initially opted for $MC because I felt the sell-off last year was too strong and I like the broad diversification of the portfolio. At the moment, the valuation seems rather fair to slightly expensive to me again, which is why I am currently only continuing to invest via a savings plan and not making any major one-off purchases.

$RMS I also see the company as attractive, mainly because of its strong pricing power through artificial scarcity. For the time being, however, I am focusing on the final build-up of my $MC position. Then, if the opportunity arises, I will be happy to add $RMS to my portfolio.

How do you plan to invest here? Buy both companies or focus on one company?

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Ricola@Roccola601

I'm going with a more favorably valued luxury stock: $1913 - but it's also exciting at the moment and it remains to be seen what the Versace integration will bring. (Only debt for now..🫠)

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