Hermès Stock Deep Dive | The World's Most Prestigious Luxury Brand w/ Shree Viswanathan (TIP659)

Clay is joined by Shree Viswanathan for a stock deep dive on Hermès. Hermès is known for luxury goods like 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: 0:00:00 - Intro 0:02:43 - Business overview of Hermès 0:04:12 - What is luxury? 0:09:44 - Where Hermès’ revenue comes from 0:17:51 - Corporate philosophy of no consultants 0:20:30 - Family ownership and history 0:28:54 - Why is Hermès a public company? 0:30:02 - Bernard Arnault’s attempted takeover 0:40:25 - What is Hermès’s moat? 0:49:48 - Birkin and Kelly bags 1:02:21 - Growth opportunities 1:07:28 - Price increases 1:09:55 - Terminal value of the brand 1:17:44 - How Hermès allocates capital for future growth 1:18:31 - Is the stock too expensive? 1:25:41 - Future price increases 1:28:59 - Growth prospects in China and India 1:39:46 - Potential risks for Hermès 1:47:57 - Outro 🤝 Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Clay and the other community members: https://theinvestorspodcast.com/maste... 📚 Start accelerating your learning journey today. Sign up and listen to Richer, Wiser, Happier for free at https://theinvestorspodcast.com/audible 💰Click here to download your FREE guide to Stop Worrying About Your Finances In 4 Simple Steps: https://www.theinvestorspodcast.com/s... ▶️ RELATED EPISODES: Concentrated Value Investing w/ Shree Viswanathan:    • Concentrated Value Investing w/ Shree Visw...   The King of Luxury w/ Christian Billinger:    • The King of Luxury | Bernard Arnault & LVM...   🎧 Listen to our episodes here: https://open.spotify.com/show/28RHOkX... 🖊️ Access the transcript and learn more about the guest here: https://www.theinvestorspodcast.com/e... 📖 BOOKS MENTIONED: 100 Baggers by Christopher W Mayer: https://amzn.to/3XhrbZQ The Founder's Mentality by Chris Zook: https://amzn.to/3ZEPxzJ The Luxury Strategy by Jean-Noël Kapferer: https://amzn.to/3XIjQTx Disclosure: Some of the links above are affiliate links that we may earn commission from. This helps keep our show going! 😀 💡 OTHER RESOURCES Seeking Alpha is a crowd-sourced content service for financial markets. Take control of your financial future — Use our link here for a 14-day free trial: https://www.sahg6dtr.com/59QC8Z/R74QP/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ABOUT OUR SHOW 🎙 On We Study Billionaires, we interview and study famous financial billionaires including Warren Buffett, Bill Gates, and Ray Dalio. We teach you what we learn and how you can apply their investment strategies in the stock market. 🌍 Website: https://www.theinvestorspodcast.com/w... 📝 Help us understand our audience better so we can create a more intentional user experience by answering this survey! https://www.theinvestorspodcast.com/s... ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ 📚OUR FREE INVESTING COURSES/RESOURCES https://www.theinvestorspodcast.com/t... 📊TRY OUR STOCK INVESTING TOOL: TIP FINANCE https://www.theinvestorspodcast.com/t... ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ❗ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.