nice comparison…very seldom find thought provoking and visionary comments these days…so thanks…
I did a quick check on history of LVMH stock and saw its history since 1990. The stock has grown approximately only 31 times in last 34 years. From 1990 till 2000 peak, approx 6 times and in next 24 years, it grew not even 10 times….
35 years is a very long time from even Europe perspective and stock gave around 10.6% cagr, which is fine for a big company to start with 35 years back. Was LVMH already a big conglomerate of brands in 1990?
Why in last 35 years when premiumization across globe is the buzzword, it managed to grow only at 10.6% cagr? Was it because the valuations were pretty high in 1990 or even in 2000 etc? It currently trades at 22 pe which is moderately high considering European companies….
Do you expect such growth from Titan over next 35 years or so?
LVMH seems to have focussed on only premium categories, has it ever ventured into any mid or mass market brands….i don’t think so. Also, has LVMH created brands from scratch or mostly acquired them?
Lastly what is the motivation of LVMH to buy any brand or make any brand and how similar or different that motivation is from Titan? For me, this would be the most important question to ask ourself if we are comparing these two.
As you did excellent comparison between the two, I thought to put some intangibles into picture and would be nice to get your thoughts as well.
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