Bernard Arnault Gets $4.3 Billion Richer in a Day, Closing In on Warren Buffett
(Bloomberg) -- Bernard Arnault, the world's fourth-richest person, added $4.3 billion to his fortune Wednesday as Chinese consumers' growing appetite for handbags and Hennessy cognac boosted results at LVMH.
Shares of his Paris-based luxury-goods maker surged 6.9 percent, the most since mid-2016, as fourth-quarter profit topped analysts' estimates on strong demand from China, the world's second-largest economy. Arnault controls about half of LVMH through a family holding company, Groupe Arnault SE.
His wealth has surged $8.3 billion since the start of the year and now stands at $76.9 billion, putting him within striking distance of Berkshire Hathaway Inc. Chairman Warren Buffett, who's currently ranked third on the Bloomberg Billionaires Index with $84.8 billion. Amazon.com Inc. founder Jeff Bezos, the world's richest person, added $6.1 billion to his net worth Wednesday, while No. 2 Bill Gates, the Microsoft Inc. co-founder, gained $889.4 million.
Read more: LVMH surges as China's appetite for luxury bags holds up
LVMH's stake in luxury fashion house Cristian Dior SE comprises most of Arnault's fortune. He moved into luxury goods in 1984, taking over the bankrupt textile group that owned Christian Dior. He sold the company's other businesses and used the proceeds to buy a controlling stake in LVMH. Last month, the company agreed to acquire high-end hotel operator Belmond Ltd. in a deal that values the owner of New York's ‘21' Club at $2.6 billion.
Arnault has never ranked higher than fourth on the Bloomberg wealth ranking, which could see more of a shakeup near the top Thursday. Shares of Mark Zuckerberg's Facebook Inc. surged 12 percent in extended trading at 5:25 p.m. in New York after the company posted sales and profit that smashed estimates. Zuckerberg, currently the world's seventh-richest person, is poised to jump to No. 5, leapfrogging Spain's Amancio Ortega and Mexico's Carlos Slim.
--With assistance from Robert Williams, Rachel Chang and Jack Witzig.
To contact the reporter on this story: Ben Stupples in London at bstupples@bloomberg.net
To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Peter Eichenbaum
©2019 Bloomberg L.P.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
