Richemont (CFRUY) (CFRHF) has not worked out particularly well since it was first recommended in November 2018. The company owns a collection of exclusive luxury brands, such as Cartier, Van Cleef & Arpels, Chloe, Dunhill, IWC and Piaget. The category is currently despised by the market for various reasons:
- People will travel less because of the COVID-19 outbreak and the Chinese consumer, which accounts for 33% of the global luxury market according to Bain, will retreat to mainland China.
- Luxury watches are threatened by smartwatches, such as the Apple Watch.
- The global economy