Minuk's Musings and Luxury
Richard Minuk - Jun 23, 2023
Are your shopping preferences good investment indicators?
It depends what you wear.
Are you a Club Monaco fan like me? They’re a private company so taking an ownership stake (buying their stock) might be difficult.
However, Gap/Old Navy is good for the basics, you can't go wrong with jeans from Levi's and who doesn’t like getting their sunglasses and sandals from H&M? You can be an owner of those three companies as their stocks are publicly traded.
Or maybe your taste is elevated above us troglodytes and fancy wearing Louis Vuitton, Hermes and Burberry, all publicly traded companies as well.
From an investment perspective, paying up for quality in luxury brand names has been the winning strategy of late.
With all the worries following Covid about global consumer activity and as we feel the pinch from inflation, it looks like we are still willing to splurge on luxury. And this has effectively increased the value of many luxury brands.
Richard Minuk, CFA , Investment Advisor