But that doesn’t answer my question. What is LVMH doing that makes them so valuable? Wikipedia says they “specialize in luxury goods”, but that takes us right back to what I say in my original post. What value is LVMH creating, beyond just “luxury”? Again, I may be wrong, but it just doesn’t seem possible to become the third richest person by selling “luxury”—whether real estate, champagne, clothes, or jewelry.
For most sectors, I think there’s tiers. Apple sells less devices at a slightly more expensive price point than e.g. Microsoft or Google. I think the highest tiers, that only a few can afford, but at the highest price point (which is actually a selling point of your product) makes intuitive sense as a path to being one of the richest, and real estate, as an asset class, makes intuitive sense to apply this strategy to.
Most of his wealth comes from his stake in LVMH, a luxury real estate group.
Edit: Actually LVMH is involved in several luxury verticals, not just real estate.
But that doesn’t answer my question. What is LVMH doing that makes them so valuable? Wikipedia says they “specialize in luxury goods”, but that takes us right back to what I say in my original post. What value is LVMH creating, beyond just “luxury”? Again, I may be wrong, but it just doesn’t seem possible to become the third richest person by selling “luxury”—whether real estate, champagne, clothes, or jewelry.
Expensive real estate actually seems like a great way to become one of the richest people. Maybe we just have different priors.
Edit: apparently, the real estate isn’t where they make their money though...
I agree that real estate can make a person rich. But the path I see for that is only tangentially connected to luxury
For most sectors, I think there’s tiers. Apple sells less devices at a slightly more expensive price point than e.g. Microsoft or Google. I think the highest tiers, that only a few can afford, but at the highest price point (which is actually a selling point of your product) makes intuitive sense as a path to being one of the richest, and real estate, as an asset class, makes intuitive sense to apply this strategy to.