Investing in Wristwatches and Other Veblen Goods
As the economy tightens and income inequality grows, some may wish to invest in luxury goods which are perhaps less susceptible to the forces impacting the middle class. Veblen goods, such as luxury watches and fine art, have their demand increase as their price increases, and thus are less likely to be discounted in an economic downturn. To the extent that Veblen goods hold their value, in the event of high inflation, they have the potential to increase in their nominal prices along with inflation.
While one option is to buy Veblen goods directly, doing so at scale can be difficult, and new goods often experience substantial depreciation. As an alternative, one can invest in the producers of Veblen goods. It is difficult to invest in producers of fine art, as they tend to be individuals, rather than corporations. On the other hand, most luxury watches are produced by publicly-traded companies whose shares are readily purchasable. As many are not based in the United States, there may be a degree of exchange rate risk for American investors. Nonetheless, investment is possible. Here are several conglomerates that have luxury brand holdings that include wristwatch brands:
CFRUY: Compagnie Financière Richemont SA
- A. Lange & Söhne
- Azzedine Alaïa
- Baume & Mercier
- Cartier
- Chloé
- Dunhill
- Giampiero Bodino
- IWC Schaffhausen
- Jaeger-LeCoultre
- Montblanc
- Officine Panerai
- Peter Millar
- Piaget
- Purdey
- Roger Dubuis
- Vacheron Constantin
- Van Cleef & Arpels
HESAY: Hermès International Société
- Hermès
KORS: Michael Kors Holdings Limited
- Jimmy Choo
- Michael Kors
- Versace
LVMUY: LVMH Moët Hennessy Louis Vuitton S.E.
- Bulgari
- Chaumet
- Zenith
- Berluti
- Céline
- Charles & Keith
- Dior
- Emilio Pucci
- Fendi
- Givenchy
- House of Bijan
- Kenzo
- Loewe
- Loro Piana
- Louis Vuitton
- Marc Jacobs
- Moynat
- Nicholas Kirkwood
- Rimowa
- Thomas Pink
- Ardbeg
- Belvedere
- Bodega Numanthia
- Cape Mentelle
- Chandon
- Château Cheval Blanc
- Château d’Yquem
- Cloudy Bay
- Dom Pérignon
- Glenmorangie
- Hennessy
- Krug
- Mercier
- Moët & Chandon
- Newton Vineyard
- Ruinart
- Terrazas de los Andes
- Veuve Clicquot
- Wenjun
- DFS
- Le Bon Marché
- Le Grande Epicerie
- Sephora
- Starboard Cruise Services
- Acqua di Parma
- Benefit Cosmetics
- Fresh (cosmetics & fragrances)
- Givenchy Parfums
- Guerlain
- Kenzo Parfums
- Make Up For Ever
- Parfums Christian Dior
- Perfumes Loewe
- Maison Francis Kurkdjian
- Fenty Beauty by Rihanna
- Marc Jacobs Beauty
- Kat Von D Beauty
- Cheval Blanc
- Caffè-Pasticceria Cova
- Feadship
- Les Echos
- Christian Dior
PPRUY: Kering SA
- Gucci
- Saint Laurent
- Boucheron
- Bottega Veneta
- Balenciaga
- Alexander McQueen
- Brioni
- Girard-Perregaux
- JeanRichard
- Qeelin
- Pomellato
- Dodo
- Tomas Maier
- Christopher Kane
- Ulysse Nardin
- Volcom
SWGAY: The Swatch Group AG
- Blancpain
- Breguet
- Harry Winston
- Glashütte Original
- Omega
- Jaquet Droz
- Léon Hatot
- Rado
- Longines
- Middle Range
- Hamilton
- Certina
- Mido
- Tissot
- Balmain
- Ck Calvin Klein
- Swatch
- Flik Flak
- Endura
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