Differences between Investing vs Trading
Differences between Investing vs Trading
In 1987, Bernard Arnault took over the helm of LVMH and transformed it into the world's largest luxury goods group. Under his leadership, the Group has made a series of strategic acquisitions, including DFS in 1996, Louis Vuitton in 1997 and Gucci in 1999. Today, LVMH operates more than 60 prestigious brands in over 4,000 stores in more than 160 countries worldwide.
LVMH's core businesses include fashion and leather goods, wines and spirits, watches and jewelry, perfume and cosmetics, and select retailing. The Group's fashion and leather goods brands include Louis Vuitton, Christian Dior, Celine, Givenchy, Kenzo, and Marc Jacobs, among others. LVMH's wines and spirits portfolio includes Moet & Chandon, Dom Perignon, Veuve Clicquot Ponsardin, Hennessy, Glenmorangie, Belvedere, and Ruinart. The Group's watch and jewelry brands include TAG Heuer, Chaumet, Bulgari, and Fred. LVMH's perfume and cosmetics brands include Parfums Christian Dior, Guerlain, Givenchy, Kenzo Parfums, and Benefit Cosmetics.
LVMH competes with other luxury goods companies such as Richemont, Kering, and Hermès.
Looking back at LVMH's historical share price performance, we can see that the stock has experienced a number of ups and downs over the years. However, the overall trend has been positive, with the share price increasing significantly since the company's IPO in 1987. Some of the biggest peaks and troughs in the stock price have been driven by macroeconomic factors such as recessions and periods of strong economic growth. For example, the stock price took a sharp dip at the beginning of 2020 due to the pandemic and following concerns about slowing growth in the Chinese economy, which is a major driver of luxury consumption but recovered quickly as the luxury goods market bounced back.
LVMH's share price has been on a steady rise in recent years, reaching an all-time high of over €730 at the end of 2021. This can largely be attributed to the strong performance of the luxury goods sector as a whole, with LVMH benefiting from its status as the largest and most diversified player in the industry. Looking ahead, LVMH is well positioned to continue its strong performance, supported by continued growth in the global luxury goods market. However, the company faces some headwinds in the form of a deteriorating geopolitical environment and potential trade tensions.
There are some key differences between investing and trading in LVHM shares. When you invest in a company, you are buying shares in that company and become a shareholder. This means that you are entitled to dividends and have a say in how the company is run.
However, you also take on the risk that the share price could fall and you could lose money. When you trade in LVHM shares, you are buying and selling contracts for difference (CFDs). This means that you do not own the shares but you speculate on the price movement. You can make money whether the share price goes up or down. However, you should be aware that there is a risk of losing money if the share price falls.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Which are the competitors of LVMH shares?
Some of the main competitors for LVMH shares include Hermès, Kering, and Richemont. These companies are all luxury goods conglomerates with a large presence in the global market. LVMH has a higher market capitalization than both Hermès and Kering, but Richemont is slightly larger. all three companies have comparable annual revenue, with LVMH slightly ahead.
Who owns most LVMH shares?
The biggest shareholder of LVMH is Christian Dior SE, with 41.4% of shares. The second largest shareholder is the Arnault Family, with 6.72% of shares. Capital Research & Management Co. (World Investors) owns 1.72% of LVMH shares, and The Vanguard Group, Inc. owns 1.29%. Thornburg Investment Management, Inc. owns 1.15% of LVMH shares, and Norges Bank Investment Management owns 1.10%. The final largest shareholder is Fidelity Management & Research Co. LLC, with 0.92% of shares.
Do LVMH shares pay dividends?
Yes, LVMH shares do pay dividends. As of the most recent dividend announcement, the company has declared a total dividend for 2021 of €10.00 per share. This includes an interim dividend of €3.00 and a final dividend of €7.00. Shareholders will receive their next dividends on December 5, 2022. The dividend yield for LVMH shares is 1.97%. This means that for every €100 worth of LVMH shares, investors can expect to receive €1.97 in dividends over the course of a year.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.