Trigg: Enduring luxury compounders require ultra-high pricing and direct distribution
Mike Trigg · Mike Trigg – Defying the Fade at WCM (Capital Allocators, EP.162) · Nov 2, 2020 · at 30:30
Mike Trigg describes WCM Investment Management's historical quantitative industry study on luxury goods companies.
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“And we studied about 50 luxury companies over the course of 30 years and tried to find What were the markings of the ones that really compounded returns at really high rates for a long period? I'm not the ones that, you know, sure, there's many of them that had their day in the sun, but what are the ones that were really lasting and enduring? What are the real coffee can investments in that group? And when we did that, it was really clear that there was two criteria. One, the higher the price points, the better. So the more aspirational the brand, the more enduring it tends to be. And then the other one is controlling your own distribution. So direct sales, not heavily relying on wholesale channels.”
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