This is how you invest money wisely in fashion

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This is how you invest money wisely in fashion
This is how you invest money wisely in fashion
Anonim

For the joy of brave fashionistas and brand addicts, more and more fashion houses are pushing on the stock market, so with a little luck, anyone can benefit from Louis Vuitton, Michael Kors and Burberry shares these days. Here's a quick tip for those who feel an affinity for becoming designer investors!

LVMH, which dominates a large part of the luxury conglomerate - which can control such brands as Sephora, Dior, Moet & Chandon, Hermés, Bulgari or Louis Vuitton - according to last year's data, turnover of 28.1 billion euros and had a profit of 5.9 billion euros. The company clearly attributes the spectacular increase in value to the effect of the stock market, although according to experts, it is almost impossible to surpass these figures, writes refinery29.com.

Michael Kors debuted on the stock market in December 2011. It is worth investing in the designer's shares, who have already made the right decision, as they were able to triple their money in two years: those who invested $1,000 in the American fashion house 2 years ago can now be $2,800 richer, enough to buy two luxury bags. Crocs or Tiffany & Co promise to be similarly good investments, where you can get shares from around 66 dollars (15,100 forints).

According to experts, it is worth investing in Moet champagnes
According to experts, it is worth investing in Moet champagnes

How do we know it's time to invest?

If you are encouraged by the data and want to go on the stock market, first check your finances. Which means that you should only embark on the adventure if you have no credit card debt and have enough savings in your account.

“I think the stock market can be a good investment mostly for people with high incomes and some extra money to put some money aside for their retirement years. But there are more and more women in the market who don't have children and don't want to buy a house, so they say: I want to buy shares. This type needs to start learning the rules of investing, says Lauren Lyons Cole, a Certified Financial Planner in New York.

Louis Vuitton has been the best investment for businessmen for decades
Louis Vuitton has been the best investment for businessmen for decades

Luxury companies have produced double-digit market growth for three consecutive years thanks to Chinese buyers. Ralph Lauren, Louis Vuitton, Burberry and Tiffany & Co have all outperformed in the last five years. It is worth being careful with positive data, because the fashion world is quite volatile, so you never know when a designer will start to take a deep flight (see the case of Galliano). So just because something has been super successful for the last five years, it doesn't mean that that luxury product will always be in huge demand in the market. It is worth noting that past performance should not be used as a starting point, as it is not a guarantee of future performance.

Don't cringe at it, take it easy, playfully

The employee of the New York Stock Exchange can't stress enough that if we go into the stock market, we should do it primarily for our own entertainment. “Let's put some money aside for the game. But let's do all this with the knowledge that we might lose it. We can think of failure as learning money. Think it's like losing our wallet!” says Cole.

You can now invest your savings in Tiffany & co shares!
You can now invest your savings in Tiffany & co shares!

If we have the opportunity and desire to invest money, according to the experts, we should try weseed.com first. The site allows us to invest and track events without any bonus being deducted from us. If it works, let's invest in a real stock, but don't check the market situation every day, because we'll just freak out if we look at it at the wrong time and we're about to lose! From a tax point of view, we have to keep our money in the shares for at least one year anyway. We check the given brand before investing, so we protect ourselves from losing 100 percent of our money if the given company fails by accident. We can check it on the S&P Global Luxury Index, which tracks the entire luxury industry.

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