Is This Recession-Proof Company a Long-Term Buy?

Louis Vuitton Moët Hennessy (LVMH) is a global leader in luxury goods. But is it also one of the best recession-proof stocks in the world? Do the rich continue to spend on luxury even during a recession... or does the data prove otherwise?
At this roundtable, we discuss LVMH's retail business empire and analyse its financial data during a recession to find out if LVMH is truly as recession-proof as they say. We also highlight the key risks for the company and how to calculate the intrinsic value for its stock. All this and more in our latest episode!
00:00 Introduction
00:44 Business model
08:47 Recession-proof
14:48 Risks
19:44 Valuation
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[@StevenTong-sy9gg]

I'm a LVMH shareholder and invest in the stock on a monthly basis. However, another really good luxury brand that you can consider covering is Ferrari $RACE. The numbers are really good and the they are also developing a lifestyle business that has promise. I like Hermes too but decided on LVMH as I prefer the conglomerate approach vs all in on 1 brand only.

[@TheFifthPersonChannel]

We've actually done research on Ferrari before! We may cover it at a roundtable in the future

[@ncs2000]

Buy a few units of RACE, then can go brag saying I own a few Ferraris

[@zeeeee21]

Not sure whether I missed it but how would you recommend for us to be invested in LVMH? Via LVMUY? If so, thoughts on the withholding tax? Also, views on impact of China on the business.

[@TheFifthPersonChannel]

We prefer the actual shares listed on Euronext Paris. There's a dividend withholding tax (amount depends on your residency) but we'd invest in LVMH for its growth, less its yield. A weaker China would mean softer demand for luxury goods which affects LVMH. Hope this helps!

[@dharmeshpatel5146]

Was wanting to discuss a luxurious brand co,

[@TheFifthPersonChannel]

Well, here you go!

[@francoisnguyen1744]

I am French & Investor and I have LVMH in portfolio. My only advice is to buy whenever it is below 728€. It is a nice stock !

[@Doreenfreundt]

How do most of you guys still make profit? Even with the downturn of the economy and ever increasing life standards

[@kianhweeong]

One other risk is the wine and spirits segment. This is cyclical as it depends on the harvesting. The good thing is this segment is not a big one.

[@TheFifthPersonChannel]

Good point! Yes, vintage can vary year to year

[@shawnwkk]

That’s an excellent point

[@bappe5028]

Prefer hermes than lvmh

[@TheFifthPersonChannel]

Another great luxury stock!