On today’s episode, Clay is joined by Shree Viswanathan for a stock deep dive on Hermès. Hermès is a luxury goods manufacturer renowned for its high-quality craftsmanship. The brand is known for its iconic products, such as the Birkin and Kelly bags, silk scarves, and equestrian-inspired items.
Since the IPO in 1993, shares of Hermès have compounded at 20.6% (excluding dividends), while the S&P 500 had a total return of just 10.4%.
Shree Viswanathan is the founder and portfolio manager of SVN Capital.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:38 - A business overview of Hermès.
10:28 - Examples of Hermès thinking exceptionally long-term in their business strategy.
30:16 - The attempted takeover of Bernard Arnault.
37:59 - The strength of Hermès’ moat.
56:01 - The growth opportunities ahead for Hermès and the luxury industry more broadly.
01:03:22 - How Hermès approaches capital allocation.
01:14:15 - Shree’s thoughts on Hermès’ valuation.
01:29:51 - Risks that investors should monitor for Hermès.
And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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