Investing in luxury goods has long been an attractive alternative to investing in the stock market. A major perk of art as an asset, for example, is that its value doesn’t rise or decline with the stock market and, when sold in the future, offers the possibility of generating income or profit.
We can understand why people are excited by the thought of investing in luxury goods; there’s a certain prestige attached, and luxury goods offer a possibility of cash returns. They are tangible and there’s the benefit of instant gratification, which doesn’t come with traditional investment options such as stocks and bonds.
However, is buying or investing in luxury items always a wise decision? Are diamonds and handbags really your best friends? Are paintings a worthwhile investment? Just like any other investment, luxury goods carry investment risks.
Personally, I do not own any luxury item or stock. Nonetheless, there is one luxury stock that I would like to own one day - $Hermes International SA(HESAY)$ . HEYAS is a Paris-based retailer that produces high-quality (and high-priced) Birkin handbags, silk scarves and luxury timepieces.
HESAY, whose iconic logo is of a Duc carriage with horse, sells its fashion, apparel and accessories through its 306 stores in 45 countries around the world.
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