Last month, Arnault surpassed Musk to claim the title of the richest person in the world. According to estimates from Forbes and Bloomberg, he is still the current holder of that title. Lately, Forbes estimates his net worth to be $191 billion, while Bloomberg provides a more conservative figure of $172 billion. He has been a millionaire for a long time, employing techniques from Warren Buffett and Steve Jobs to amass fortune and rise in the ranks.
Who is Bernard Arnault?
The name of the French multibillionaire should undoubtedly be familiar. He has consistently ranked among the wealthiest people in the world for years, even displacing Jeff Bezos of Amazon as number one as recently as 2021 before making way for Musk.How Bernard Arnault Made His Fortune?
Arnault, the son of a businessman in the construction industry, took over his father's company in the 1970s and later changed its focus to real estate before moving on to textiles and retail. He invested $15 million from his family firm to acquire Christian Dior from its insolvent owners in 1985, thereby starting the construction of what is today LVMH. He still owns 97.5% of the renowned French opulence fashion house.Bernard Arnault helped merge Louis Vuitton with spirits giant Mot Hennessy. Over the following three decades, he acquired a majority position in the resulting holding company, dubbed LVMH, expanding his luxury retail empire. He owns about half of LVMH, with a market value of nearly $390 billion. Over the first nine months of 2022, revenues totalled around $60 billion.
Arnault is known to routinely visit the retail outlets of LVMH's brands and those of their rivals; on some days, he reportedly visits up to 25 shops. He has also expressed satisfaction in preserving and expanding some of France's most recognisable brands and fashion designers.
How Did He Become The Richest Man In The World?
Arnault's recent rise to the top of the billionaire rankings occurs simultaneously that a significant portion of Musk's wealth is rapidly disappearing after the Tesla and SpaceX CEO took control of Twitter in October 2022.Bernard Arnault's wealth has remained largely stable in recent months despite the upheaval in the world markets. Most of Arnault's fortune is derived from his ownership of LVMH stock, which has increased by approximately 65% since 2020.
Arnault's wealth has also increased by tens of billions of dollars. According to Forbes, Arnault's fortune increased by more than a factor of two to $150 billion last year from $76 billion in 2020 as the market for luxury products recovered from its initial pandemic-related decline.
Those Who Have Most Influenced Arnault's Business:
One of his fellow billionaires, Warren Buffett, chairman and CEO of Berkshire Hathaway, has been cited by Arnault as his greatest source of business inspiration. Buffett is well-known for adhering to the "buy-and-hold" investment philosophy and advocating patience over daily market monitoring over the long run.Arnault has also referred to patience as "a vital trait" in business. According to reports, he spent ten years courting the Italian jewellery maker Bulgari before swooping in to buy the business in 2011. However, it appears that Arnault hasn't exactly followed in Buffett's footsteps. According to Bloomberg, Buffett has donated more than $45 billion of his income to charity since 2006. He co-founded the Giving Pledge in 2010, pledging to donate at least half of his money to charity before he passes away.
Which Affiliates is LVMH the Owner of?
LVMH Mot Hennessy Louis Vuitton SE is a luxury goods manufacturer with its global headquarters in Paris. It runs through the following commercial sectors:Spirits & Wines
This market produces and distributes premium sparkling and champagne wines. Additionally, it sells vodka and white liquor. The companies in this market include Ao Yun, Ardbeg, Belvedere, Bodega Numanthia, Cape Mentelle, Chandon, Château Cheval Blanc, Château d'Yquem, Château Galoupet, Cheval des Andes, Clos des Lambrays, Clos19, Cloudy Bay, Dom Pérignon, Eminente, Glenmorangie, Hennessy, Joseph Phelps, Krug, Mercier, Mot & Chan.Clothing & Leather Products
This industry produces bags, accessories, shoes, and clothing in addition to luggage. Berluti, Celine, Christian Dior, Emilio Pucci, Fendi, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Patou, and RIMOWA are among the names represented in this segment.Cosmetics & Perfumes
This sector manufactures and sells cosmetics, perfumes, and skincare items. Acqua di Parma, Benefit Cosmetics, Cha Ling, Fenty Beauty by Rihanna, Fresh, Guerlain, Kenzo Parfums, KVD Beauty, Maison Francis Kurkdjian, Make Up For Ever, Officine Universelle Buly, Parfums Christian Dior, Perfumes Loewe, and STELLA by Stella McCartney are some of the companies in this category.Sustainable Retailing
The goal of this category is to promote a setting that is compatible with the status and image of luxury companies. It deals in marketing upscale goods to tourists from abroad and aboard cruise ships like the Starboard cruise services. This division also oversees Sephora-like beauty salons that provide customers with direct access and support.Conclusion:
Although Musk maintains a considerably higher profile than Arnault, Arnault has long held the distinction of Europe's richest person. He explained to the LVMH-owned Radio Classique in October that he had sold his private jet because he was publicly ridiculed on Twitter for using it so much.According to Bloomberg, Bernard Arnault is married and has five children, all currently employed by LVMH or one of its companies.
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