Agree with your feeling about the luxury market. This might extend to spirits (premium drinks) as well.
Watches have the additional risk of technological change. Jewellery is not changing much in 10-20 years, watches could & this requires risky investments.
Like the hidden value in retail stores. Do you have more examples of luxury companies having significant retail real estate (compared to market cap)?
watches are collectors Items like a jewelry for men, so I think that they are fine. I don't know others with a lot of real estate compared to market cap, maybe LVMH with all the retail within Paris, but that does not compare so high to the market cap, although it's in the billions
Heard the watches are jewellery argument before. Still think technology has always been a bigger part of watches than in jewellery and this will likely continue.
Will let you know if I find an interesting luxury company with excessive real estate exposure.
Agree with your feeling about the luxury market. This might extend to spirits (premium drinks) as well.
Watches have the additional risk of technological change. Jewellery is not changing much in 10-20 years, watches could & this requires risky investments.
Like the hidden value in retail stores. Do you have more examples of luxury companies having significant retail real estate (compared to market cap)?
watches are collectors Items like a jewelry for men, so I think that they are fine. I don't know others with a lot of real estate compared to market cap, maybe LVMH with all the retail within Paris, but that does not compare so high to the market cap, although it's in the billions
Heard the watches are jewellery argument before. Still think technology has always been a bigger part of watches than in jewellery and this will likely continue.
Will let you know if I find an interesting luxury company with excessive real estate exposure.
Would Mandarin Oriental fall into the category of luxury with real estate exposure?
Yes. Interesting thought. Might be more real estate with luxury exposure. Guy has written a great article recently about Mandarin:
https://superfluousvalue.substack.com/p/mandarin-oriental-dont-lose-money
Thanks for sharing this article
part of the Jardine Matheson group, interesting one!
I think that for these fans, they are about the looks and style and not about the tech, and smartwatches do not interest them.