Robinhood CEO sees Amazon-like subscription model as path to 'loyalty' in financial services
Robinhood CEO Vlad Tenev is bundling more services into the the company's $5 a month subscription service. With more offerings like wealth management and tax advice, Tenev sees the opportunity to create something like Amazon Prime for investors.
Read More
Bernard Arnault’s Brilliant Advice for Anyone Dreaming of Retirement One Day
If one visits almost any medium to large sized mall around the globe, certain luxury brand name stores or products tend to dominate, such as: Louis Vuitton Kenzo Fendi Sephora Tiffany Christian Dior Givenchy Dom Perignom Bulgari Guerlain ….and numerous others. All of these luxury brands and about 65 others all have a few things in common: they are high demand, top-dollar price tagged, and are all owned by LVMH Moet Hennessey Louis Vuitton SE (OTC: LVMUY), the Paris, France headquartered luxury conglomerate helmed by Bernard Arnault. Arnault’s savvy management and focus on high-end, top of the line products has catapulted him into multibillionaire status, with a net worth that fluctuates between rivalling and even exceeding that of Elon Musk and Jeff Bezos, based on the stock price of LVMH at any given time. Despite the vast differences in the types of companies they find attractive and demographics of their respective customer bases for those companies, Arnault and Buffett share a “buy and hold” long term investment strategy mindset, and investors can find useful applications for several of the underlying rationales for how Arnault invests, even without the billions at his disposal. Key Points Both Warren Buffett’s and Bernard Arnault’s investing successes are based on a “buy and hold” strategy, although Berkshire Hathaway and LVMH could not be more unlike as corporate entities. In terms of stock price appreciation, Berkshire Hathaway has appreciated 2,800% over 30 years (1993-2023), while in the same time period, LVMH grew 100,000%. Although Arnault acquires a controlling interest in most of his companies like Buffett, there are underlying principles and rationales for his selections, which individual investors can also learn from and utilize. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor) Optimistic In The Long Term; Pessimistic In The Short Term Tiffany’s renowned reputation for premium jewelry and artistic craftmanship made it a must-have brand for LVMH to acquire. Whereas Warren Buffett characteristically pursues conservative companies with solid earnings that are undervalued, Arnault is much more aggressive, preferring high growth potential companies with high quality products that have underachieved through poor management or marketing. By investing in new designs and marketing, Arnault believes true value will eventually be achieved. Additionally, whereas Buffett’s modus operandi is to buy companies at bargain levels as low as possible to offset risk, Arnault has no qualms about paying a premium to acquire control over highly desired brands that he can then escalate even further. Buffett’s approach concentrates much more on intrinsic value and earnings and eschews hype or popularity, and is focused on solidly established industries, such as consumer goods, insurance, railroads, food, and banking. This explains Berkshire Hathaway’s late involvement in investing in technology. Conversely, Arnault’s focus on the luxury goods sector has helped LVMH to nearly corner the market on certain top brand couture, perfumes, champagnes, and accessories. That said, Arnault values diversification with synergy, as he has also branched out into related sectors like media and technology, especially if they can contribute to increasing value for his other holdings. While Arnault’s approach is unequivocally higher risk, the returns have been stellar. In a 30 year stretch from 1993 to 2023, Berkshire Hathaway stock grew 2,800%. In that same period, although much more volatile. LVMH grew 100,000%. Investing Tips for Retirees Berard Arnault’s acquisition selection principles can easily be applied to stock choices for one’s retirement portfolio. Bernard Arnault’s acquisition strategies are multimillion-dollar or even billion-dollar affairs. However, the underlying rationale for most of his acquisition choices are predicated on principles that will work to build any portfolio, and is something that retirees may especially wish to consider incorporating for their own stock picks: Quality Over Quantity – Some investors, especially Baby Boomers, are intimidated by the high prices of certain stocks, especially when they reach triple digits. However, if the investment is part of a growth portfolio, even 5 or 10 shares of a Magnificent 7 stock, such as Apple or Microsoft, will likely fare better than 100 shares of a company with more marginal upside potential. Look For Innovation – Companies that are not trying to innovate or who go on autopilot instead of investing in R&D, will likely become stagnant over the long haul. The ones who are pushing the envelope will have a stronger chance for a big breakthrough, Think Globally – Arnault’s luxury brands have universal appeal in practically all contemporary societies, throughout all of the developed nations and emerging nations, to even Communist societies, where LVMH goods like Louis Vuitton handbags fetch enormous sums on the black market. Companies that market to the world as opposed to only a limited local market have a greater chance for long-term massive growth. On the topic of retirement, Arnault clearly loves what he does. He has led LVMH for 35 years and had the company’s by-laws for retirement extended twice, first to 80, and then to 85, when he himself reached age 76. His other advice to potential retirees would likely be to avoid it if you love what you’re doing. The post Bernard Arnault’s Brilliant Advice for Anyone Dreaming of Retirement One Day appeared first on 24/7 Wall St..
Read More
Carvana: Well Positioned To Dominate Amazon
Carvana's recent 23% pullback presents a prime entry point for long-term investors, despite Amazon competition concerns. Strong Q4 performance with record net income, revenue growth, and a robust adjusted EBITDA margin solidify Carvana's market position. Carvana's unique logistics network and inventory management differentiate it from Amazon and other competitors, ensuring continued growth.
Read More
Amazon Is A Great Buy Despite Capex Fears
Since the recent earnings, Amazon stock has seen over 15% correction despite beating the earnings estimate for EPS and revenue. The DeepSeek shock has been quite significant and it does put into question the massive capex forecast of Amazon. Tariffs and other macro challenges are also a headwind for Amazon in the short term.
Read More
Amazon's Q4 Proves It's Still A Strong Buy: Even After The Pullback
Amazon's latest earnings surpassed expectations, with Q4 revenue up 10.5% YoY and operating income up 60.5%, making AMZN stock look undervalued. Amazon's diversification, including AWS, Alexa, and Ring, drives its dominance and resilience, attracting a diverse customer base and ensuring steady growth. Despite recent stock volatility, Amazon's 5-year performance and recent pullback presents a strong buying opportunity, supported by historical "buy the dip" strategies.
Read More
Can the Tide Turn for 'Magnificent Seven' Stocks? ETFs in Focus
The “Magnificent Seven” group consisting of Tesla TSLA, NVIDIA NVDA, Alphabet GOOGL, Microsoft MSFT, Amazon AMZN, Apple AAPL and Meta META is showing signs of a rebound lately as evident from 3.3% uptick on March 24, 2025. The group was heavily beaten-down over the past month.
Read More
Can the Tide Turn for 'Magnificent Seven' Stocks? ETFs in Focus
The “Magnificent Seven” group consisting of Tesla TSLA, NVIDIA NVDA, Alphabet GOOGL, Microsoft MSFT, Amazon AMZN, Apple AAPL and Meta META is showing signs of a rebound lately as evident from 3.3% uptick on March 24, 2025. The group was heavily beaten-down over the past month.
Read More
