Is the Warren Buffett of Luxury a Better Investor Than the Legend Himself?
If you think there's been a lot of talk lately about the richest person in the world, you aren't alone. A few years ago, it was Jeff Bezos. Elon Musk recently reclaimed the title. But another man -- Bernard Arnault of LVMH Moët Hennessy (OTC: LVMHF) -- has been jockeying for the crown over the past year. And he made his fortune in much the same way Warren Buffett did with Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). In fact, you might argue he's an even better investor. With the back story and the numbers, I'll let you be the judge.
Many know the story of Warren Buffett and Berkshire Hathaway. As an investor looking for cheap stocks, he bought shares in a New England textile mill. The investment suffered for a few years until Buffett took a controlling stake and began using cash the company generated to make other investments -- especially in the stock market. Although his strategy has morphed over time, he is a value investor through and through. He is always considering his investment options through the lens of a fair price.
Arnault's path was very similar, although his style and strategy are quite different. Intrigued with luxury, he reportedly used money from his family business to buy the parent of Christian Dior out of bankruptcy. From there, he was invited to invest in the recently merged LVMH as the factions representing Louis Vuitton and Moët Hennessy struggled for power. In short order, Arnault had seized it for himself. He still controls about half of the company. The rest is history. Unlike the friendly grandfather-like persona Buffett has created, Arnault has earned nicknames through the years like "the terminator" and "the wolf in cashmere." He is, in short, viewed as aggressive and ambitious.
Source Fool.com
