Richemont

Our equity and balanced portfolios’ core holdings include many of the global stocks listed in SA such as Richemont.

Richemont is a high quality, globally diversified hard luxury business that owns some of the world’s most desirable and enduring heritage brands. These brands have legacies that span centuries and cannot be easily replicated, which raises the barriers to entry for competitors and provides a significant level of protection from technological disruption. The aspirational nature of its enviable brand portfolio affords Richemont significant pricing power and allows it to enjoy healthy margins over time. Richemont’s earnings are extremely high quality, denominated mainly in developed market currencies (largely euros and US dollars) and is supported by cash (10-year free cash flow conversion of approximately 95%). It boasts a fortress balance sheet (approximately 9% of market capitalisation comprises net cash) and a stable ownership structure that ensures that the business is managed for the long term.

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