- While LVMH had to report one of its worst years in the last decades, the stock is trading 20% higher than before COVID-19 hit the world.
- High barriers to entry, a wide economic moat, a recession-proof business and Bernard Arnault in control, make LVMH a great business.
- According to Bain & Company, we can also expect the luxury goods sector to grow in the years to come, but it might take until 2023 to reach pre-crisis levels.
- And the current stock price does not reflect the underlying business in any way - the stock is (highly) overvalued.
For further details see:
LVMH: Worst Fiscal Year In Decades Meets Record Highs