Are you a fan of luxury fashion brand Hermes? Do you want to invest in the company by purchasing shares?
If so, you may be wondering if it’s possible to buy shares in Hermes. In this article, we’ll explore the options available for investing in this high-end brand.
What is Hermes?
Hermes is a French luxury fashion house that specializes in leather goods, accessories, and perfumes. The company was founded in 1837 by Thierry Hermès and has since become a symbol of luxury and exclusivity. Some of its most famous products include the Birkin and Kelly bags, silk scarves, and men’s ties.
Can I Buy Shares in Hermes?
The short answer is no – at least not directly. Unlike many other fashion brands such as Louis Vuitton or Gucci, Hermes is not a publicly traded company.
This means that its shares are not available for purchase on any stock exchange. Instead, ownership of the company remains within the Hermes family.
Indirect Investment
While you can’t buy shares of Hermes directly, there are still ways to indirectly invest in the brand. One option is to invest in a mutual fund or exchange-traded fund (ETF) that holds shares of companies that own stakes in Hermes.
For example, LVMH Moet Hennessy Louis Vuitton SE (LVMH), which owns several luxury brands including Louis Vuitton and Dior, has a 23% stake in Hermes. By investing in an LVMH ETF or mutual fund, you would indirectly own a portion of Hermes.
Another option is to invest in companies that supply products or services to Hermes. For example, luxury leather goods manufacturer Hermès International SCA (HESAF) supplies leather to its namesake brand as well as other luxury brands like Chanel and Gucci. By investing in Hermès International SCA, you would indirectly benefit from its relationship with Hermes.
Considerations
Keep in mind that investing in the luxury fashion industry can be risky. The sector is heavily influenced by consumer trends and economic conditions, and the COVID-19 pandemic has had a significant impact on sales and profits for many luxury brands. Additionally, investing in mutual funds or ETFs carries its own risks, including fees and expenses.
Before investing in any company or fund, it’s important to do your research and consult with a financial advisor to determine if it’s the right choice for you.
Conclusion
While you can’t buy shares of Hermes directly, there are still ways to invest in the brand indirectly through mutual funds or ETFs that hold shares of companies with stakes in Hermes. However, it’s important to consider the risks associated with investing in the luxury fashion industry before making any investment decisions.