LVMH $MC.PA shares have been under pressure for a while now, and it…

LVMH $MC.PA shares have been under pressure for a while now, and it doesn't look like sentiment around the luxury sector is about to turn quickly.

A few years ago, the company was greatly helped by strong demand from China and an overall very good mood around luxury. Today the situation is almost the opposite. The Chinese customer is spending less, growth has slowed, and the whole luxury goods sector is under pressure.

I personally hold LVMH in my portfolio, and honestly I'm not sure what to do with the position now. On one hand, I still hold a company with several of the strongest luxury brands in the world, such as Louis Vuitton, Dior, Tiffany or Bulgari. On the other hand, I've been waiting for a more significant turnaround for some time and it still hasn't come.

So for now I'm mostly holding and watching whether the situation in the luxury sector finally starts to improve.

Do any of you have LVMH or other luxury brands in your portfolio?

What was the investment thesis at the time of purchase and how has it changed since? I had a bit in LVMH and Hermès, but then I rotated it all into AI. Before Covid I didn't follow it that much, but it seems to me that the buying frenzy after the restrictions were lifted may not repeat for some time. LVMH may have succession problems, Arnault is no longer the youngest and his children may not get along completely well after his departure. It's hard to estimate the impact of their abilities on the operations of individual segments, and overall it's quite difficult to orient oneself in so many segments and brands.

Hermès, on the other hand, has been valued quite stretched for a long time, now it's better, but I don't know if I currently want to return there. If it dropped a bit more, I wouldn't mind at all.

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