Is LVMH Stock a Buy?
I started a position in LVMH (OTC: LVMUY), the world's largest luxury goods company in February 2019. At the time, I admired its robust growth in revenue and profits, its natural insulation from macro headwinds, its strong cash flows, and its dependable dividend.
I accumulated more shares of LVMH over the past two years, and I'm currently sitting on an unrealized gain of over 60% as the stock hovers near all-time highs. That rally was surprising since LVMH faced unprecedented headwinds -- including sales disruptions during the civil unrest in Paris and Hong Kong, higher tariffs in the U.S. market, and widespread store closures during the pandemic.
LVMH also confused investors with its takeover bid for Tiffany & Co. (NYSE: TIF) -- which was initially announced last November, delayed twice during the pandemic, briefly abandoned, then modified at a lower price in October. The merger is now expected to close by early 2021.
Source Fool.com
