Investing in LVMH
One of the largest luxury companies in the world. Being the union of several companies with centuries of experience in the luxury goods industry.
Investing in LVMH generates a high return. Since the company generates year after year higher profits and increases the value of its assets. For this, we bring you everything you need to know about this company. From its history, strengths, weaknesses, to how to buy LVMH shares for investment.
What is LVMH?
Moët Hennessy Louis Vuitton or LVMH, is a conglomerate and multinational company of French origin. It specializes in the design, manufacture and marketing of luxury products. The headquarters of this company is located in Paris, France.
LVMH, arises as a merger between companies. Moët & Chandon founded in 1743 and Hennessy founded in 1765, joined to create Möet Hennesy in 1971. Then, by 1987, this company merged with Louis Vuitton, which dates its founding to 1984. Giving it centuries of combined experience and a robust economic position.
By 2020, LVMH manages more than 60 subsidiary companies. While each of these owns several brands simultaneously, generating revenues in the billions. In total, LVMH has 75 brands across all its subsidiaries. LVMH’s oldest brand, dating back to 1593, is a leading wine producer.
Among LVMH’s range of luxury products are cosmetics, apparel, luxury accessories, jewelry and more. The company also has a strong presence in the perfume industry, with several luxury brands. In addition, it has several brands of spirits such as champagne, cognac, wine and more.
LVMH is a surprising economic juggernaut, being parent company of several subsidiaries with luxury products. The value of the LVMH share is trading at a high level. In 2019, LVMH recorded €53.7 billion (EUR) in revenues and total equity of €33.957 billion (EUR). It has assets valued at €128.550 billion (EUR).
By December 2020, the LVMH share value was positioned at €498.00. This represented an increase of 22.46% since November, 35.79% since July and 72.95% since March of the same year. This high increase in the LVMH share price demonstrates the company’s excellent investment opportunities.
Throughout its history, there have been surprising increases in the LVMH stock price. Being a company of such economic robustness that its shares usually remain at high prices. However, since its inception, this company has registered an increase of up to 2,408% throughout its journey in the stock market.
Buying LVMH shares: Advantages
- It has customers all over the world. Who regularly seek to use and have the most exclusive and luxury products. So they pay millionaire prices for these goods. Allowing the value of NASDAQ LVMH shares to increase regularly.
- Great economic robustness. This is reflected both in its revenues and total equity, as well as in the company’s assets. This is the main reason why LVMH‘s stock price is so robust and superior to other companies.
- Superior quality products. Designed with a superior level of craftsmanship, using the finest materials. So each of the LVMH products are coveted. Generating great investment opportunities, buying LVMH stocks.
- LVMH products do not decrease in value, on the contrary, they increase in value. This makes investing in the company’s shares, as well as in the company’s assets, very profitable. So customers around the world will not mind paying millions of dollars for these products. Thus increasing the LVMH share price.
Buying LVMH shares: Disadvantage
- It has products in a limited market. This is both a benefit and a disadvantage. Since this provides exclusivity to the brand, however, it also generates that there is no greater volume of sales worldwide, which could increase the value of LVMH shares.
The first thing you need to learn how to invest in LVMH, is to have a reliable broker. In 2020 we have tested several options, the ones we liked the most for their excellent platform, ease of use and low commissions, are the following.
Check the different brokers and choose the one you like the most. After that, you must create your account, verify it and load your balance before you can buy the LVMH stock. To do this, just follow the instructions below.
- Access the official website of the broker of your choice.
- Look for the New User Registration option.
- Fill in the requested data. Account information, personal and payment information.
- Verify your account. To do this, you must click on the verification link you receive in your email.
- Load the balance you need in your broker, with TDC or digital wallet.
- Search for the stock in your broker’s system. This company is listed as EPA: MC and Euronext Paris: MC.
- Read the latest news from the luxury industry, related to the different companies and subsidiaries belonging to LVMH. What happens to them can affect the value of the LVMH share price.
- If you own LVMH shares, regularly review how much an LVMH share is worth. In order to analyze what is the right time to sell or buy shares and generate a high return on your investment.
- Analyze the price change in LVMH shares. Seeking to predict investment opportunities, to know what is a good time to buy LVMH shares.
- Save on LVMH shares. Since the company increases its shares regularly. As in 2020, which saw increases of up to 72.95% to the share value. As this will help you make your savings work for you.