There seem to be very well-run companies in the luxury sector that - until now - seem to survive the test of time. I am European, so my first thoughts go to Hermes and Ferrari.
But I am also conflicted, the recent run has been exceptional. But maybe we are approaching a time where image and reputation are eroding? This is purely speculative, and I am no expert, but some trends seem to tell me that the younger generation is less impressed by the older generation's wealth and goods, more conscious in various fields (find it interesting, for instance, the strong decline in alcohol consumption). Visible status does seem to be more and more frowned upon.
Obviously, I don't want to generalise. I have a very narrow view on the matter, I could be very wrong or only be relevant for a small portion of the population.
I thought about that topic because I had an interest in Ferrari as a company and set a reminder at under 280e (325$), not believing I'd achieve it anytime soon. But its decline increases rapidly, and I could see my price target this month. Although a quality business, I do question myself about its relevancy to survive the test of time (not couple of years, but decades).
What do you feel? And what are your favourite luxury stocks?