2024-09-13
1 小时 42 分钟You're listening to tip.
On today's episode, I'm joined by Sri Viswanathan for a stock deep dive on Hermes.
SRI owns Hermes and his fund SVN Capital and he takes a long term, concentrated, patient approach to investing in public equities.
Hermes is one of the most valuable luxury brands in the world, renowned for its high quality craftsmanship and rich heritage.
The brand is known for its iconic products such as the Birkin and Kelly bags, silk scarves and horse related Items.
Since the IPO in 1993, shares of Hermes have compounded at 20.6% excluding dividends, while the S&P 500 has had a total return of just 10.4% over the same period.
Hermes was founded in 1837 and it's still managed by the founding family who own 67% of the shares.
These shares are controlled by three branches of the founding family and combined the shares are worth roughly 155 billion, making them one of the wealthiest families in the world.
During this episode, Sri and I give a business overview of Hermes.
We share the story of the attempted takeover of Bernard Arnault.
We discuss the strength of Hermes's moat, the growth opportunities that lie ahead, their approach to capital allocation, their very rich valuation, and the most important risks going forward.
This was one of my favorite episodes I've recorded on the show, so I really hope you enjoy it as well as SRI shares a ton of fascinating insights during our conversation.
Whether you're interested in Hermes or not, I think there's a lot we can learn about such a company that can somehow be implemented into our own business or own personal lives in some form or fashion.
With that, I bring you today's episode discussing the luxury icon Hermes.
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