Matein Khalid
2024 was the annus horribilis for luxury stocks as the Dragon Empire’s cultural DNA under Xi Dada pivoted to Maoist austerity, inflation hit the mass affluent wannabe Gatsbys of Europe and boonie America and Incredible India’s bling-bling badshahs and bhabhijis discovered the hard way that the speculative stock market mania on Dalal Street can and did end in tears. Obviously, Gandhian values are not exactly consonant with Champagne wishes and caviar dreams but at least designer dhoti and Danone branded goat’s milk would make nice accessories with the parked Maybachs and Lambos on Altamont Road to visit the Richlanis next door yaar!
To add insult to injury LVMH bankrolled the Paris Olympics and Bernard Arnault was anointed at Reims as the new King of France (with Marine as his queen) but LVMH shares did diddly squat unless you were short, which I was not. LVMH, Gucci/Kering and Capri were all in the doghouse and the devil not only wears Prada but wants to buy House of Versace – RIP Gianni, miss you caro capo di tutti capi!
Burberry was in the twilight zone and Swiss watch makers were haemorrhaging cash flow. 2025 is a whole different story, Xi Dada has embraced Jack Ma and ignited the animal spirits of Chinese tech yuppydum. It is now socially acceptable for CCC boss-men to gift each other Moët et Chandon Champagne and Hennessy Whisky gift wrapped with some yuan baksheesh without risking a bullet in the back of the head. Trump now rules America with his Billionaires Boys Club. Men are men, women are women and Harry Winston/Van Cleef are the court bijoutiers.
I can see green shoots in luxury stocks now as the LVMH earnings confirmed. Richemont/Cartier had a blowout report and even sad sack Burberry gave Mr. Market positive financial guidance. Luxury brands have finally got real on price inflation. LVMH’s Murakami collaboration has gripped Le Tout-Paris and traffic to the maisons stores. The pent-up demand is obvious across the known universe. US luxury spending will also rise as King Dollar enables shopaholics to run amok in Europe.
Ferrari is my fav auto stock, not the shlock Tesla with its creepy cult/shoddy overpriced products that will meet their nemesis with BYD. Ferrari’s brand heritage is pure Italian Dolce Vita when l’avvocato ruled the jetset from his lairs in Monaco and Turino. Giovanni Agnelli was the ultimate class act, a model of manhood for a star struck boy I once was. I prefer to accumulate RACE at 450 as the prancing horse will fly by the time the Monaco Grand Prix roars down the streets of Monte Carlo to Port Hercules and the silhouette of the superyachts shimmer on the Med. Ferrari’s 9% exposure to Greater China enabled RACE to outperform Mercedes Benz and even LVMH. Splendidi ragazzi!
As a Formula One groupie who came of age in the time of Ayrton Senna, Alain Prost and Bernie, I am totally gaga for Liberty Media’s Formula One tracker stock. I normally diss tracker stocks but this one includes a 30% stake in the white hot Live Nation ticketmaster plus the circuit of dreams from Silverstone to Monza to our own Yas Island Marina. Ownership of sports brands or luxury experiential dining brands in London, New York, Paris and yes, Dubai is a license to make money on an obscene scale.
Netflix will stun the world with media rights. Sponsorship rev growth is unreal at 30%. MotoGP deal is a winner and so is F1 shares. Time to rev up pronto, duckies.
Also published on Medium.
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