While the broad masses suffer from continued inflation, the wealthy of this world seem to take little notice – as the billions continue to multiply in their accounts. The same goes for the richest man in the world: Bernard Arnault.
According to the Handelszeitung, Arnault’s net worth is $210 billion, or about CHF 188.1 billion. In 2023 alone, it could generate a growth of 47.8 billion dollars, or 42.8 billion francs.
One of the reasons why Arnault became the richest man in the world last year can be seen in Deloitte’s recently published ranking. According to the ranking, the luxury segment is one of the big winners of 2021. The French luxury goods conglomerate LVMH (Moët Hennessy – Louis Vuitton SA) recorded a turnover increase of 51.4 percent and a retail turnover of 56 billion. And: This luxury empire belongs to none other than Arnault.
These brands are part of Arnault’s empire
Bernard Arnault is a French entrepreneur. In the early 1980s, he made his living building vacation homes on the French Riviera and later in Palm Beach, Florida. He also founded the Groupe Arnault, acquiring the Christian Dior company in 1985 for about $15 million.
Arnault has led the LVMH empire since 1989. Under his leadership, LVMH has been able to grow steadily and now includes 75 well-known fashion and cosmetic brands. This includes everything from the luxury segment to cheaper brands. Here are some examples:
LVMH also has a record takeover: in 2021, the group acquired American jeweler Tiffany & Co. for $15.8 billion. This deal is considered the largest acquisition of a luxury brand of all time.
To ensure that LVMH remains in the hands of the Arnault family, the patron is already taking precautions:
This is how the luxury brand Gucci escaped the colossus
In the 1990s, Arnault considered establishing a center in New York. With this he wanted to strengthen the presence of LVMH in the United States. The result of this project was the 24-story LVMH Tower, which opened in December 1999.
Arnault’s hunger for expansion was far from satisfied. That same year, he became aware of the Gucci brand, an Italian leather goods company then headed by Tom Ford and Italian businessman Domenico De Sole.
The New York Times tells the story as follows: Arnault initially discreetly acquired a 5 percent stake in the Gucci company without direct attention from the company. However, when the investment became public, Gucci reacted with hostility to the purchase, calling it a “sneaky takeover”.
Arnault quietly increased his stake to 34.4 percent. He always emphasized that he wanted to be a supportive and non-intrusive shareholder.
De Sole then suggested that Arnault be represented on the board if he did not further increase his stake in Gucci. However, Arnault refused to accept these terms.
De Sole had discovered a loophole that allowed him to issue shares only with the approval of the board of directors. For every share Arnault bought, De Sole also created more shares for his employees, diluting Arnault’s stake.
The dispute dragged on for two years until an agreement was reached in September 2001. After the court ruling, Arnault sold his shares and made a profit of $700 million.
La vie est belle: living like the super rich
Arnault is a man of superlatives. And mainly associates with people who also belong to the same category. It is therefore not surprising that L’Express described him as a “close confidant” of former French President Nicolas Sarkozy. Arnault was also his best man at his wedding to Cecilia Sarkozy in 1996.
Arnault also occasionally meets Swiss tennis star Roger Federer in a friendly match, he told Handelszeitung.
Arnault maintains friendly relations with high-ranking politicians and athletes and is highly influential himself. However, the gossip newspaper Citysignal described his real estate portfolio as “surprisingly small”.
In this case, the definition of “small” is probably in the eye of the beholder, as Arnault owns several properties around the world. According to various reports, he has several homes in France, including a residence in Paris, one in Bordeaux and one in St. Tropez.
Befitting his rank, Arnault resides in a castle built in 1830 in the commune of Clairefontaine-en-Yvelines. This property features a large garden, a private lake and a tennis court.
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
