Johann Rupert, the Chairman of Richemont, shares his profound insights and wisdom on various aspects of the luxury goods industry. In his speeches, he highlights the importance of long-term thinking and cautions against short-termism, advising against buying back shares at high prices. Mergers and acquisitions are another topic he focuses on, expressing the belief that the real risk lies in buying a business, not selling it. He warns against paying for goodwill and encourages building brand equity as a means to maintain a sustainable competitive advantage and pricing power in the luxury business.
Rupert’s perspective on governance challenges the notion of box-ticking corporate governance, suggesting that it leads to chaos in the medium term. He believes that having someone unfamiliar with the business may not result in the best corporate governance approach. Additionally, he emphasizes the need for caution in assuming fixed costs, advocating for shared costs with landlords. Rupert also stresses the importance of maintaining a strong balance sheet and sufficient liquidity, enabling the company to seize opportunities that may arise within the luxury goods sector. Overall, his speeches offer valuable insights into the complexities and strategies involved in navigating the luxury business landscape.
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