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Well, if sales rose 17% and the inflation is 40%, they’re not really getting richer. It’s also apparently a luxury goods company, so it’s somebody buying a Lou
by mypastself 3y ago
Well, if sales rose 17% and the inflation is 40%, they’re not really getting richer.
It’s also apparently a luxury goods company, so it’s somebody buying a Louis Vutton handbag and paying for somebody else’s salary.
Whether or not you think that situation is fair, this is a clear case of a company facilitating the transfer of money from the well-off to the less well-off via salaries and taxes.
- zztop44 3y agoOf course pension funds are a big part of any large-cap company’s shareholder base. But I wouldn’t be surprised if on a proportional basis LVMH’s customers are less well off than their shareholders.
- mypastself 3y agoThat’s quite possible, but the stock price rose along with increased revenue. Revenue is used to pay salaries, and it‘s also spent on taxes at a higher rate than in the U.S. So in this case, consumption by a wealthy customer base benefits a broader population as well. The wealth actually does “trickle down” to an extent.