LVMH: Awaiting The Normalization That Hasn't Come

Industry Overview - The luxury industry typically experiences annual growth of 5%-8%, making it unusual to see more than two consecutive years of declining revenues [1] - Current projections suggest that 2026 may see little to no growth in the luxury sector [1] Investment Strategy - The focus is on investing in companies with strong qualitative attributes, acquiring them at attractive prices based on fundamentals, and maintaining long-term holdings [1] - The investment approach involves managing a concentrated portfolio aimed at minimizing losses while maximizing exposure to high-potential winners [1] - Companies may receive a 'Hold' rating if their growth opportunities fall below acceptable thresholds or if their downside risks are deemed too high [1]