Bernard Arnault, every mention
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every year anyone David Rosenthal 49Ben Gilbert 12Howard Schultz 4David Senra 1Andrew Marks 1
Verbatim, from the transcripts: the passages where Bernard Arnault comes up
Coca-Cola: The Complete History & Strategy (Audio) · Acquired
- ▶ 2:59:25 David Rosenthal What's the Bernard Arnault quote?
Trader Joe’s: Hawaiian shirts and counter positioning (Audio) · Acquired
- ▶ 1:57:16 David Rosenthal This is the exact same kind of structure, by the way, that Domenico DeSole and Tom Ford used to protect Gucci as the mechanism by which they rebuffed Bernard and LVMH in the handbag wars between Gucci and LVMH.
Rolex (Audio) · Acquired
- ▶ 3:15:23 David Rosenthal This is like the, uh, the Bernard Arnault story, buying, uh, Louis Vuitton out of Boussac.
Mars Inc. - The Chocolate Story (Audio) · Acquired
- ▶ 1:24:03 Ben Gilbert In many ways, it feels, uh, Bernard Arnault-esque.
- ▶ 3:36:44 Ben Gilbert It's very Bernard Arnault style.
IKEA (Audio) · Acquired
- ▶ 2:39:52 David Rosenthal But LVMH, certainly capital, both from Bernard and the family and other sources, went into the business.
Starbucks (with Howard Schultz) · Acquired
- ▶ 2:40:23 Howard Schultz And I took Mr.
- ▶ 2:40:29 Howard Schultz He and his son, yeah.
- ▶ 2:40:31 Howard Schultz Yeah, I spent a good amount of time with him.
- ▶ 2:40:45 Ben Gilbert What was Bernard doing in Seattle?
- ▶ 2:40:47 Howard Schultz I don't know what he was doing in Seattle, but I spent a fair amount of time with him and his son.
Renaissance Technologies (Audio) · Acquired
- ▶ 1:06:57 Ben Gilbert The idea that the price would be highest for the family member that is willing to sell now and sort of goes down over time, if the family was gonna sell to Bernard Arnault, it would behoove you to be first in the order book, not last in…
Hermès (Audio) · Acquired
- ▶ 1:17:00 David Rosenthal We got to talk with Domenico de Soleil, who was CEO of Gucci during the fight with Bernard Arnault that we chronicled.
- ▶ 1:17:13 Ben Gilbert When, uh, Domenico de Soleil and Tom Ford and that team rejected Bernard's takeover and managed to not become a part of LVMH, and obviously then Domenico and Tom Ford left to start Tom Ford after that.
- ▶ 1:51:23 David Rosenthal We're in the 19 eighties, the go-go years, you know, this is the, the years that are shaping Bernard Arnault here.
- ▶ 2:09:21 David Rosenthal The fight with Bernard Arnault.
- ▶ 2:11:44 Ben Gilbert David Rosenthal, let us return to Bernard Arnault.
- ▶ 2:11:54 David Rosenthal Ok, so, for anybody who's listened to our LVMH episode, as we talked about earlier, the climax of the story is Bernard's fight with Gucci in that episode.
- ▶ 2:12:06 David Rosenthal And Gucci is the one that gets away, Bernard isn't able to buy it.
- ▶ 2:12:22 David Rosenthal So in 2001, right after he lost Gucci, Bernard quietly buys an initial stake in Hermes of 4.9%.
- ▶ 2:12:38 David Rosenthal And then, here's what they do that the Hermes families couldn't see coming, that only Bernard could engineer.
- ▶ 2:13:16 David Rosenthal And when Bernard first starts buying in the early 2000, it's below ten billion.
- ▶ 2:13:23 David Rosenthal I mean, you could say lots of things about Bernard and genius should be top of your list, but he is one of the best investors of all time.
- ▶ 2:14:03 David Rosenthal He's like, look, Bernard isn't buying your shares just because he wants to make an investment, or he wants to have some fun.
- ▶ 2:14:28 David Rosenthal So why is Bernard doing this?
- ▶ 2:14:46 David Rosenthal I hope on our LVMH episode, this is some of the nuance that we painted about Bernard.
- ▶ 2:18:27 David Rosenthal So Bernard sees, okay, we've got a generational transfer opening here, and in fact, when Jean-Louis retires in 2006, he promotes his sort of COO right-hand person, Patrick Thomas, to be the first non-family member CEO
- ▶ 2:19:05 David Rosenthal I think there's as much chance as not that that was right, but at a minimum, I think this shows the sort of ignorance.
- ▶ 2:19:40 David Rosenthal The Arnaud's of the world.
- ▶ 2:19:41 David Rosenthal So that's one thing that Bernard sees.
- ▶ 2:23:43 David Rosenthal Two other things that I saw in the research, and I think Bernard probably saw here too.
- ▶ 2:28:24 David Rosenthal Bernard sees all this.
- ▶ 2:29:10 David Rosenthal But I think this is, like, a really important point that I want to land, is I don't think Arnaud was wrong.
- ▶ 2:29:26 David Rosenthal In October of 2010, Arnaud, he's patient.
- ▶ 2:29:49 David Rosenthal And Bernard at the time, he says, I had to do it because
- ▶ 2:30:32 David Rosenthal He says, if you want to seduce a beautiful woman, obviously Hermes being the beautiful woman here, you don't start in the fashion that Bernard is, and he doesn't use those words.
- ▶ 2:31:52 David Rosenthal So Bernard now owns almost the entire public float of Hermes.
- ▶ 2:32:12 David Rosenthal Bernard can't do anything.
- ▶ 2:32:16 David Rosenthal So as Bernard is shrinking the float of this company, the shares that are available for trade on the public markets, well, what happens to the stock price?
- ▶ 2:32:39 David Rosenthal And now Bernard's coming to them, and this is his strategy.
- ▶ 2:33:14 David Rosenthal You know, I'm sure Bernard and other people at LVMH and everybody else in the industry is doing everything they can to convince family members to sell.
- ▶ 2:34:46 David Rosenthal So they're basically saying to Bernard, no matter what you do, you could pick off anybody else after this for a minimum of 20 years with potential to extend beyond that.
- ▶ 2:36:34 Ben Gilbert They're like, Bernard, you will be dead when this expires.
- ▶ 2:38:07 Ben Gilbert The fact that they actually rebuffed this offer and that Bernard sold down his stake is crazy.
- ▶ 2:38:13 David Rosenthal Well, let's get into what happens with Bernard's stake.
- ▶ 2:38:26 David Rosenthal And Bernard still wins here.
- ▶ 2:39:11 David Rosenthal It's Group Arnault, which is Bernard Arnault's family office.
- ▶ 2:39:22 David Rosenthal Which, this is the brilliance of Bernard, they take
- ▶ 2:39:43 Ben Gilbert This billions of dollars landing in Bernard's personal bank account, he has created that money out of nowhere.
- ▶ 2:39:56 David Rosenthal So, back when Bernard was engineering his takeover of LVMH, one of the financial instruments that he used to do it was he IPO'd a 25% stake in Dior.
- ▶ 2:41:20 David Rosenthal Bernard's ownership of LVMH goes from 36% up to 46%.
- ▶ 2:41:36 David Rosenthal Basically, Bernard just gets 10% more of his own company as a result of this.
- ▶ 2:41:59 David Rosenthal I don't think there are any losers here, and the Hermes families absolutely are not losers, and you could even say they sort of have the last laugh here, because yes, Bernard gets to benefit from, you know, an extra four to five x…
- ▶ 2:43:08 David Rosenthal It wasn't just the Bernard affair in and of itself that led to this 16 X market cap increase.
- ▶ 2:44:25 David Rosenthal And what they've done over the last 10 years since the Bernard fight is that they have figured out how to scale hand-crafted artisanal production.
- ▶ 3:00:52 David Rosenthal Not because I think that Apple and technology is going to take over the world, but I think there's some serious problems with this product along the lines of the issues that Bernard identified in the company when he was making his run.
- ▶ 3:05:36 David Rosenthal The defense against Bernard.
- ▶ 3:24:10 David Rosenthal Now, on the LVMH episode, we talked a lot about, and I think this truly was maybe the most brilliant thing that Bernard Arnault did was he realized, when nobody else did, that there were scale economies in luxury to a group of luxury…
- ▶ 3:56:03 David Rosenthal The reason I say it's fun is the family wants to keep doing this, and so if it weren't fun, they would probably maximize value, and they would hit the short-term bid, and they would sell to Bernard, but they don't.
Holiday Special 2023 (Audio) · Acquired
- ▶ 45:37 Ben Gilbert I mean, it's Bernard Arnault.
- ▶ 1:53:04 David Rosenthal Bernard Arnault.
- ▶ 1:54:32 David Senra And the reason this book is so amazing was because it ends, and Bernard is 42 years old.
Charlie Munger (Audio) · Acquired
- ▶ 32:45 Andrew Marks What Arnaud has done has been amazing.
Porsche (with Doug DeMuro) · Acquired
- ▶ 2:15:54 David Rosenthal At this point, Vita King and Porsche's CFO joins the Volkswagen board, and then they keep buying shares, but using another patented Bernard Arnault technique, they do it mostly using various derivatives and options contracts.
- ▶ 2:53:32 David Rosenthal Going into doing this episode, I sorta wondered in the back of my mind, has Bernard Arnault and LVMH ever made a run at any of these luxury auto companies?
- ▶ 2:54:17 Ben Gilbert So if I were to guess, I would say maybe Bernard Arnault has kicked the tires on, like, Ferrari, Lamborghini, but more on, like, licensing agreements than trying to own those businesses, because I just don't think it actually works into…
Holiday Special 2022 · Acquired
- ▶ 1:19:39 Ben Gilbert The one that is not is Bernard Arnault, which one of the world's top five wealthiest people, and not in tech, not in finance, but in luxury brands.