anubisSonOfRa on Nostr: We Study Billionaires - Hermès Stock Deep Dive Yesssir! This just dropped. One of ...
We Study Billionaires - Hermès Stock Deep Dive
Yesssir! This just dropped. One of their best episodes and I'm not saying that just because $RMS.PA is my largest stock position. Yes, larger than $NVDA $NKE $H $META $MSTR etc.
Guest Shree Viswanathan talks about Hermès' history, what luxury principles they've implemented, what makes them unique, growth opportunities, potential risks and much more. Shree has deep knowledge about the company and it shows.
I agree with almost everything said. In fact, it could've been me talking, but I'd like to add:
Positives
* CEO Axel Dumas. Shree touches on this, but it can't be stressed enough. Axel is one great CEO. Listen to an interview or earnings call. He doesn't just do this, he lives this. He won't mess this up.
* Small product portfolio given their size. Less risk of excess stock.
* Small marketing budget and no celebrities for ad campaigns. They don't pay or give clothes to celebrities to wear on red carpet events. Everyone pays for their Hermès pieces.
* Extremely tight control on supply and distribution chain.
Risks
* Shree mentions reputation as a risk which I agree with. The example mentioned refers to the scandal with a certain crocodile farm which applied horrendous practices. It was later shown this farm had nothing to do with Hermès, but this is the kind of stuff that could change people's perception of the brand. Hermès buys leather from producers so it is a risk. I'm not worried about child/slave labour. I might be I'm naive, but this should be a non issue here.
* Losing the aura of exclusivity due to increased sales. If anyone can buy an item it's not longer exclusive. It's as simple as that. The pressure on Hermès to keep growing sales is a real one. So far they've managed to balance this perfectly, but who knows what the future holds?
Good luck!
Source
https://www.theinvestorspodcast.com/episodes/hermes-stock-deep-dive-shree-viswanathan/
Yesssir! This just dropped. One of their best episodes and I'm not saying that just because $RMS.PA is my largest stock position. Yes, larger than $NVDA $NKE $H $META $MSTR etc.
Guest Shree Viswanathan talks about Hermès' history, what luxury principles they've implemented, what makes them unique, growth opportunities, potential risks and much more. Shree has deep knowledge about the company and it shows.
I agree with almost everything said. In fact, it could've been me talking, but I'd like to add:
Positives
* CEO Axel Dumas. Shree touches on this, but it can't be stressed enough. Axel is one great CEO. Listen to an interview or earnings call. He doesn't just do this, he lives this. He won't mess this up.
* Small product portfolio given their size. Less risk of excess stock.
* Small marketing budget and no celebrities for ad campaigns. They don't pay or give clothes to celebrities to wear on red carpet events. Everyone pays for their Hermès pieces.
* Extremely tight control on supply and distribution chain.
Risks
* Shree mentions reputation as a risk which I agree with. The example mentioned refers to the scandal with a certain crocodile farm which applied horrendous practices. It was later shown this farm had nothing to do with Hermès, but this is the kind of stuff that could change people's perception of the brand. Hermès buys leather from producers so it is a risk. I'm not worried about child/slave labour. I might be I'm naive, but this should be a non issue here.
* Losing the aura of exclusivity due to increased sales. If anyone can buy an item it's not longer exclusive. It's as simple as that. The pressure on Hermès to keep growing sales is a real one. So far they've managed to balance this perfectly, but who knows what the future holds?
Good luck!
Source
https://www.theinvestorspodcast.com/episodes/hermes-stock-deep-dive-shree-viswanathan/