After the stock of multinational luxury goods conglomerate, LVMH, cumulatively added $82 billion in value, the company’s Chairman and Chief Executive, Bernard Arnault, easily earned $39 billion. The French billionaire has long been adjudged the richest man in Europe and one of the richest people in the world.
How this happened: Arnault owns almost half of LVMH, making him the majority shareholder. Now, LVMH owns a whole lot of some of the world’s most popular luxury brands. We are talking about the likes of Louise Vuitton, Dom Perignon, Christian Dior, Bvlgari, Fendi, Givenchy, Moet & Chandon, Hennesy, etc.
In total, the company’s subsidiaries comprise more than sixty global brands which range from luxury wines to high-end fashion clothing, jewellery, perfumes and cosmetics.
Recall that Nairametrics reported back in November that LVMH has acquired popular American jewellery company, Tiffany & Co for the sum of $16.2 billion. The American jeweller is famed for its high-quality and costly engagement ring rings and white diamond necklaces which are beloved by celebrities and socialites.
Therefore, with all these popular brands and bearing in mind the size of Arnault’s shareholding in the company, it does not come as a surprise how he earned that much billions in the course of 2019.
The 70-year old French billionaire was born in Roubaix, France in 1949. He has a total net worth of about $107.7 billion. In November, he granted an exclusive interview to Forbes Magazine during which he discussed his early days as a businessman and the secret behind the success of his company and its subsidiaries.
“Why are brands like Louis Vuitton and Dior so successful? They have these two aspects, which may be contradictory: They are timeless, [and] they are at the utmost level of modernity…It’s like fire and water.”