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This French trendsetter comes from a wealthy family and has turned millions of dollars into hundreds of billions over almost 40 years.
by Giacomo TogniniForbes staff
FLuxury goods mogul Bernard Arnault has become the world’s richest person for the second year in a row, taking first place in the rankings. forbes“The World’s Billionaires List.” Thanks to another record year for luxury goods conglomerate LVMH, which owns 75 coveted brands including Louis Vuitton, Christian Dior and Sephora, Assets increased by $22 billion from 2023. The group announced net income of $16.5 billion in 2023 on sales of $94 billion, and the stock price has risen 5% over the past year.
The 75-year-old billionaire has an estimated annual fortune of $233 billion. forbes This gives him a $38 billion lead over his closest challenger, Elon Musk, who held second place this year. The gap is wider than last year, when he out-earned Mr. Musk by $31 billion. Musk’s high-profile travails in 2023 have hurt his wealth, most notably when a Delaware judge in January invalidated Tesla stock options he earned in 2018. Mr. Arnault had a much better 12 months. In April 2023, LVMH became the first European company to reach a market capitalization of $500 billion.
This year will be Arnault’s 28th consecutive appearance. forbes“World billionaire ranking”. He first acquired this share in 1997, giving him an estimated fortune of $3.1 billion. Adjusted for inflation, this figure currently stands at about $6 billion. That means Arnault’s net worth has increased by more than $200 billion thanks to LVMH’s growth over the past two decades. He quickly rose through the ranks, and by 2005 he was in the top 20 richest people (worth $17 billion), and in 2011 he was the fourth richest person in the world (worth $41 billion). . His fortune took a big jump in 2018, increasing to $72 billion from $41.5 billion the previous year, but still ranked fourth. In 2023, he will overtake Elon Musk to become the world’s richest person. forbes magazine First annual list.
LVMH, known for big-ticket acquisitions of luxury retailers like Tiffany & Co. and collaborations with big-name stars like Rihanna and Fenty Beauty, has seen fewer deals last year. The company acquired a majority stake in Château Minuti, the second-largest rosé wine producer in southern France’s Provence region, and in November acquired Los Angeles-based luxury glasses maker Burton Pereira. A month later, the company sold 80% of its cruise line operator Starboard & Onboard Cruise Services to a group of private investors. The transaction amounts of these transactions were not disclosed.
In the midst of a peaceful year, Arnaud moved to strengthen his succession plan, or maintain control over his family. In January, he proposed adding his sons Alexandre and Frédéric to LVMH’s board of directors, joining his two eldest sons Antoine and Delphine. Shareholders are scheduled to vote on April 18 to approve or reject the nomination. The plan builds on his previous actions to reorganize his holding company Agash in 2022 and give equal shares to his five children. The control of Agash’s children, who own most of the family’s shares in LVMH, and their presence on the LVMH board ensures that the Arnault family will maintain control of the world’s largest luxury empire for years to come. Make it. forbes Because of his control of the company, he attributes the value of all of his family’s LVMH shares to Arnault rather than to his children.
If all goes according to plan, Arnaud’s children will carry on their father’s legacy. “Our father is very competitive. He doesn’t like to lose,” said Frédéric, the second-to-last of his children and his CEO of the LVMH watch division.・Arnaud said. forbes “This is what he passed on to us.”
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