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"Persisting patterns from the past will remain dominant in the foreseeable future."

In the interview, Gané's board member and fund manager, Henrik Muhle, discusses the importance of acquiring profitable stocks.

"The major patterns of the past will persist over time"
"The major patterns of the past will persist over time"

"Persisting patterns from the past will remain dominant in the foreseeable future."

In the dynamic world of investment, one sector that continues to shine is the luxury goods industry. Despite the growing influence of online trade, the physical experience remains crucial in this market.

Henrik Muhle, a seasoned investor and co-founder of Gané, a fund company established in 2007, sees the luxury sector integrating online trade selectively. He believes that digital channels are essential for growth, yet they should not compromise the exclusivity and personalised service synonymous with luxury brands.

Muhle's investment strategy focuses on companies that stand to benefit from long-term trends such as digitization, a longer and better life, and more efficient use of natural resources. One such company he holds in high regard is L'Occitane, a company in the affordable luxury segment. L'Occitane's stock has made a significant jump in the past twelve months, a testament to its strategic growth.

However, even companies with robust figures can experience temporary declines due to factors like market corrections or changes in government policies. LVMH, a leading luxury goods manufacturer, recently faced a 13% temporary decline. This dip is thought to be due to the prospect of China taxing its wealthy citizens more heavily.

Despite these short-term market fluctuations and correction phases, Muhle does not foresee a larger market correction at the moment. He advises a buy-and-hold investment approach, suggesting that stocks remain a necessary part of investment in the environment of structurally low interest rates.

The luxury goods sector is expected to continue growing stronger than the overall economy in the long term. Companies like L'Occitane, which successfully navigate the integration of online trade while maintaining their unique physical experiences, are well-positioned to thrive in this evolving landscape.

It is important to note that while this article discusses investment strategies and market trends, no information about data protection declarations was provided in the context of the article. Investors are encouraged to conduct their own research and consult with financial advisors when making investment decisions.

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