Leandro's avatar
$123.3m follower assets
Pairing #5
What company is higher quality?
68%ASML
31%Hermes
22 VotesPoll ended on: 06/15/22
Nathan Worden's avatar
Easy choice for me here $ASML
Leandro's avatar
@nathanworden Same for me but don't underestimate Hermes! Family run business with impressive margins and small exposure to macro
Young Money Capital's avatar
@nathanworden I'm going Hermes by a lot. Giant brand name and impressive margins.
Leandro's avatar
@youngmoneycapital This is useful because I want to dig deeper. Any recommended reads?
Young Money Capital's avatar
@invesquotes I’ve just seen some tweets and think anything luxury is a really good business. Haven’t dug in deep to either but I know the basics.
Leandro's avatar
@youngmoneycapital I think that seeing that a Hermes bag was sold for +300K is more than enough DD lol
Nathan Worden's avatar
@youngmoneycapital this is why I love discussions like this— totally am doing a double take on Hermes right now.
Zack Morris's avatar
@youngmoneycapital the nice thing about luxury is the more expensive the price of a good or service is, the more price inelastic the purchaser is. If you're buying a $20k watch you're probably not blinking at a $25k watch. Same with a $300k Ferrari $RACE.

The "luxury" business that has given me fits over the years is sports franchises $MSGS $MANU. On the one hand, they are the ultimate luxury good, and one of the true scarce assets around. On the other hand, if you own something like $MSGS you're a minority partner to James Dolan and you might never get your money out, no matter how high the Forbes value on the Knicks goes. For now I've settled on publicly traded sports franchises being a good long-term store-of-value asset, more like gold than your typical stock/operating business.
ThomasFJE's avatar
Hermes with the amazing brand value. ASML doesn’t even need explanation 🔥
Leandro's avatar
@smh brand moat vs technology moat, who will win?
Young Money Capital's avatar
@invesquotes technology changes fast brands don’t!
Leandro's avatar
@youngmoneycapital Agree for the most part but if someone wants to copy EUV there's also a supply chain moat. If ASML did not move from today and a competitor spent billions on trying to replicate EUV, it would take a decade+ imho!

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