On today’s episode, Clay is joined by Shree Viswanathan for a stock deep dive on Hermès. Hermès is a luxury goods manufacturer renowned for its high-quality craftsmanship. The brand is known for its iconic products, such as the 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:
00:00 - Intro
02:38 - A business overview of Hermès.
10:28 - Examples of Hermès thinking exceptionally long-term in their business strategy.
30:16 - The attempted takeover of Bernard Arnault.
37:59 - The strength of Hermès’ moat.
56:01 - The growth opportunities ahead for Hermès and the luxury industry more broadly.
01:03:22 - How Hermès approaches capital allocation.
01:14:15 - Shree’s thoughts on Hermès’ valuation.
01:29:51 - Risks that investors should monitor for Hermès.
And so much more!

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES
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<li>Join the exclusive <a href="https://www.theinvestorspodcast.com/mastermind-2/">TIP Mastermind Community</a> to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.</li>
<li>Shree’s fund: <a href="https://www.svncapital.com/">SVN Capital</a>.</li>
<li>Follow Shree on <a href="https://twitter.com/SvnCapital">Twitter</a>.</li>
<li>Best Anchor Stocks <a href="https://www.bestanchorstocks.com/">write-ups</a> on Hermès.</li>
<li>Books mentioned: <a href="https://amzn.to/3XASO1j">100 Baggers</a>, <a href="https://amzn.to/4glqA1W">The Founder’s Mentality</a>, <a href="https://amzn.to/3ZgoOco">The Luxury Strategy</a>.</li>
<li>Stewart Brand’s <a href="https://longnow.org/seminars/">seminar</a> on long-term thinking.</li>
<li>Howard Marks’ <a href="https://www.youtube.com/watch?v=Ea3shooJW0o">podcast</a> with Morgan House.</li>
<li>Related Episode: <a href="https://www.theinvestorspodcast.com/episodes/concentrated-value-investing-w-shree-viswanathan/">WSB585: Concentrated Value Investing w/ Shree Viswanathan</a>.</li>
<li>Mentioned Episode: <a href="https://www.theinvestorspodcast.com/episodes/the-king-of-luxury-bernard-arnault-lvmh-w-christian-billinger/">WSB645: The King of Luxury w/ Christian Billinger</a>.</li>
<li>Follow Clay on <a href="https://twitter.com/Clay_Finck">Twitter</a>. </li>
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Stig T. Brodersen

Preston Pysh

William Green

Clay Finck

TIP659: Hermès Stock Deep Dive w/ Shree Viswanathan

On today’s episode, Clay is joined by Shree Viswanathan for a stock deep dive on Hermès. Hermès is a luxury goods manufacturer renowned for its high-quality craftsmanship. The brand is known for its iconic products, such as the Birkin and Kelly bags, silk scarves, and equestrian-inspired items. Since the IPO in 1993, shares of Hermès [&hellip;]

We Study Billionaires Episode #930

TIP659: Hermès Stock Deep Dive w/ Shree Viswanathan