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- [Narrator] This man rubbing shoulders

Narrator This man rubbing shoulders

with the likes of Natalie Portman, Paul McCartney

with the likes of Natalie Portman Paul McCartney

and Rihanna is French business mogul Bernard Arnault.

and Rihanna is French business mogul Bernard Arnault

While he might not be as recognizable as those three,

While he might not be as recognizable as those three

he's got more money than all of them combined.

he's got more money than all of them combined

Arnault is the world's richest person

with a net worth of $191 billion at the start of 2023.

with a net worth of 191 billion at the start of 2023

- He is one of the most important businessmen in the world,

He is one of the most important businessmen in the world

certainly the most important in France right now.

certainly the most important in France right now

- [Narrator] He is the CEO

Narrator He is the CEO

of LVMH Moët Hennessy Louis Vuitton,

of LVMH Moët Hennessy Louis Vuitton

which is basically the first word in luxury.

which is basically the first word in luxury

In addition to Louis Vuitton, the conglomerate

In addition to Louis Vuitton the conglomerate

includes brands such as Dior, Tiffany's,

includes brands such as Dior Tiffany's

and Belvedere Vodka.

and Belvedere Vodka

- Luxury for for me is how can you create desire?

Luxury for for me is how can you create desire

- [Narrator] He's been in charge of LVMH since 1989

Narrator He's been in charge of LVMH since 1989

and all of his children

have powerful roles within the business.

have powerful roles within the business

Here's how Bernard Arnault built his wealth

and how he plans to keep it under family control.

and how he plans to keep it under family control

(playful music) (paparazzi chatting)

playful music paparazzi chatting

The richest person in the world isn't a tabloid mainstay

or red carpet regular,

or red carpet regular

even if he is seen on the front row

at his brands' fashion shows.

at his brands' fashion shows

- He's a guy who is somewhat shy.

He's a guy who is somewhat shy

He's even maybe a tiny bit awkward.

He's even maybe a tiny bit awkward

There's a saying, which gets repeated to me constantly

There's a saying which gets repeated to me constantly

by French billionaires and French CEOs, which is

by French billionaires and French CEOs which is

(Nick speaking in French)

Nick speaking in French

which basically means to live happily,

which basically means to live happily

you have to live hidden.

you have to live hidden

- [Narrator] The beginning of the Arnault empire starts

Narrator The beginning of the Arnault empire starts

with an acquisition, which would become something

with an acquisition which would become something

of a modus operandi for him over the next 30 years.

of a modus operandi for him over the next 30 years

In 1984, he took over Boussac, the holding company

In 1984 he took over Boussac the holding company

that owned French fashion house Christian Dior.

that owned French fashion house Christian Dior

- Christian Dior is maybe the most recognizable

Christian Dior is maybe the most recognizable

and the most well-known fashion name in the world.

and the most well-known fashion name in the world

- [Narrator] He sold off pretty much all

Narrator He sold off pretty much all

of the group's brands but Dior,

of the group's brands but Dior

and pulled it out of bankruptcy.

and pulled it out of bankruptcy

In the late '80s,

In the late '80s

Dior's revival helped Arnault amass a stake

in the recently founded LVMH,

in the recently founded LVMH

of which he soon became the majority shareholder,

of which he soon became the majority shareholder

CEO and chairman.

CEO and chairman

Over 30 years and several acquisitions later,

Over 30 years and several acquisitions later

LVMH now includes 75 brands,

LVMH now includes 75 brands

covering wine, jewelry, hotels and fashion.

covering wine jewelry hotels and fashion

The European company has also expanded

into China and the US where Arnault once joined

then President Donald Trump at the opening

of a Louis Vuitton factory in Texas.

of a Louis Vuitton factory in Texas

- He's a great gentleman, a great businessman

He's a great gentleman a great businessman

and he's really an artist.

and he's really an artist

To me, Bernard is an artist

To me Bernard is an artist

and what he's done is incredible.

and what he's done is incredible

- [Narrator] The luxury giant now

Narrator The luxury giant now

has a market value of nearly $438 billion

has a market value of nearly 438 billion

and revenue last year was around $86 billion.

and revenue last year was around 86 billion

These results have boosted Arnault's wealth

and put him above the likes

of big tech billionaires such as Elon Musk and Jeff Bezos.

of big tech billionaires such as Elon Musk and Jeff Bezos

While those men have seen their company shares drop

in recent months, LVMH's share price

in recent months LVMH's share price

is up over 165% since lows in March of 2020.

is up over 165 since lows in March of 2020

Though the stock market

is apparently not something Arnault pays attention to.

is apparently not something Arnault pays attention to

(Bernard speaking in French)

Bernard speaking in French

- [Narrator] That price boost was thanks to a surge

Narrator That price boost was thanks to a surge

and demand for luxury goods during the pandemic

when affluent shoppers were stuck at home flush with cash.

when affluent shoppers were stuck at home flush with cash

And more recently, China's loosening

And more recently China's loosening

of strict COVID-19 rules.

of strict COVID-19 rules

The country is one of the luxury industry's biggest markets.

The country is one of the luxury industry's biggest markets

- Bernard Arnault himself has a ton of legitimacy

Bernard Arnault himself has a ton of legitimacy

because he built up this company from scratch.

because he built up this company from scratch

He built this empire through several battles.

He built this empire through several battles

He's obviously involved

in all the key aspects of the business.

in all the key aspects of the business

- [Narrator] Also involved in key aspects of the business

Narrator Also involved in key aspects of the business

are his five children who are often seen

with him at brand events.

with him at brand events

Let's meet the family.

Let's meet the family

Arnault married his first wife, Anne Dewavrin, in 1973

Arnault married his first wife Anne Dewavrin in 1973

and they had two children, Delphine and Antoine.

and they had two children Delphine and Antoine

Delphine is the newly minted CEO of Christian Dior,

Delphine is the newly minted CEO of Christian Dior

while her younger brother, Antoine,

while her younger brother Antoine

is CEO of the family holding company.

is CEO of the family holding company

After divorcing Anne, Arnault married Helene Mercier

After divorcing Anne Arnault married Helene Mercier

and had three more children.

and had three more children

Alexandre holds an executive vice president position

at Tiffany's, the American jeweler LVMH took over in 2021.

at Tiffany's the American jeweler LVMH took over in 2021

Frederic is CEO of watchmaker Tag Heuer,

Frederic is CEO of watchmaker Tag Heuer

and Jean heads up marketing development

for Louis Vuitton watches.

for Louis Vuitton watches

(Bernard speaking in French)

Bernard speaking in French

- [Narrator] The Arnaults own more than 97% of Dior,

Narrator The Arnaults own more than 97 of Dior

which in turn owns 41% of LVMH.

which in turn owns 41 of LVMH

The family also owns close to 7% of LVMH directly.

The family also owns close to 7 of LVMH directly

On top of that,

On top of that

they have total voting rights of more than 60%.

they have total voting rights of more than 60

- So essentially what the Arnaults

So essentially what the Arnaults

and what Bernard Arnault himself decides

goes in that company.

goes in that company

- [Narrator] And Arnault has taken steps

Narrator And Arnault has taken steps

to ensure his family retains control over the empire.

to ensure his family retains control over the empire

Last year, LVMH voted to raise the age limit of its CEO,

Last year LVMH voted to raise the age limit of its CEO

meaning the 73-year-old Arnault could remain

in charge until he's 80, if he wishes.

in charge until he's 80 if he wishes

He also changed the structure of the family holding company.

He also changed the structure of the family holding company

- The children will each have a 20% stake in this structure

The children will each have a 20 stake in this structure

and they can't sell their shares for 30 years

and it essentially will keep the shares

in the family even beyond that.

in the family even beyond that

And it's one of the kind

of favorite pastimes in Parisian business circle

to kind of watch his children

and track their progress with a view to succession.

and track their progress with a view to succession

- [Narrator] Arnault has not publicly named a successor

Narrator Arnault has not publicly named a successor

but whoever it is will inherit a company

that has successfully navigated the pandemic

amid concerns for the future of the industry.

amid concerns for the future of the industry

High inflation and the war in Ukraine

have prompted estimates of a slowdown

in luxury good sales in 2023.

in luxury good sales in 2023

And in China, a recent wave

And in China a recent wave

of COVID infections means life there remains disrupted.

of COVID infections means life there remains disrupted

Economists also haven't ruled out a global recession.

Economists also haven't ruled out a global recession

For now though at least,

For now though at least

the luxury market's wealthy customers seem happy

to keep spending.

to keep spending

- The luxury goods industry

The luxury goods industry

has been a good one for investors

in part because global wealth every year is rising.

in part because global wealth every year is rising

And so more and more people are coming

into the luxury goods market each year

and that's obviously good for LVMH, for Bernard Arnault,

and that's obviously good for LVMH for Bernard Arnault

and for people selling luxury goods.

and for people selling luxury goods

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playful music

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