In the Glow

Flaneuring down Bond Street where luxury wafts over you enticingly, it is as if an IV drip full of magic realism is carousing through your veins making you believe you have escaped the everyday stepping instead into this hedonistic world!  The beauty, the opulence, the lust for sparkling, rare and unique pieces twinkling at you in temptation from renowned jewellery houses, full of sheer sparkling delight!  Forget confectionery shops, these are your candy crush highs for those who have wisely but sanctimoniously given up sugar!  

Whilst ecstatically in the saccharine throes of contemplating those deliciously dazzling diamonds, the investor Peter Lynch’s sage comments on Dunkin Donuts all those years ago (where he made a “tenbagger” profit) jumps to the fore and induces us to question who owns these companies?  Are they listed on the stock market, held by private equity or still in the hands of the family?  As Benjamin Franklin wrote “An investment in knowledge pays the best interest” and so the Baroque Rocks team like veritable Agatha Christie sleuths: uncovered some not unsurprising answers!  

Baroque Rocks is so in the “GLOW!!”  Did you know that just THREE companies own practically all the big jewellery houses!!  These megaliths of luxe are: LVMH, RICHEMONT & KERING.

LVMH
At the helm of LVMH (Louis Vuitton Moet Hennessy) is the Lord of Luxe, Bernard Arnault, the French global taste-maker who oversees a veritable empire of 70 brands.  Arnault is worth roughly $77B according to Forbes.  LVMH has a cache of 9 fine jewellery and watch houses in its treasure chest:

RICHEMONT
The second largest luxury goods company after LVMH!  The South African, Johann Rupert, who according to Forbes is worth $6.4B founded the Swiss luxury goods company in 1988 thanks to a spinoff of assets owned by his father’s company Rembrandt Group Limited (now Remgro).   Richemont’s casket of riches comprises of 20 brands with over half being fine jewellery and watch houses:  

KERING
Pronounced “caring” was founded in 1963 by the Frenchman Francois Pinault, though the company’s then incarnation was as a bricks, wood, and mortar business.  Fast forward to today they have sold off their non-luxury assets focusing purely on the luxury market!  KERING by name, caring by nature - Pinault was involved in quite the tussle over GUCCI with LVMH’s Arnault rather aggressively trying to annex the company!  KERING proved its mettle and GUCCI stayed put.  Pinault’s son Henri now runs the group with a family net-worth estimated by Forbes at $30.4B.  In their sparkling trousseau they hold 5 fine jewellery and watch brands:

OTHER
The magpie megaliths haven’t quite bought the entire bejewelled Monopoly board as other players entered the game, acquiring almost all the rest of the renowned jewellery houses:

PRIVATELY OWNED
And in case you were wondering whether there were still a few truly independent houses out there - there most certainly are and they are keeping their treasures close to their chests!!

FINALLY:
This year if you are deciding against a large splurge on a tantalising bauble then perhaps investing in a few shares with those Magpie Megaliths may bring you future riches which you can then splash on a physical brilliant bit of bling? 

Caveat here as investment advice is strictly verboten and more to the point giving a loved one a piece of paper with numbers on may go down like a sh** sandwich – akin to being given a printer!  Though if the printer were 3D that would be a step in the right direction as they can now print GOLD!!!  We’ve seen it with our own beady Baroque Rocks eyes – YES GOLD!!

With love from Emma and the Baroque Rocks Team