Bernard Arnault, Briefly World’s Richest Person: A Look at the Numbers
In January 2020, there was a brief shakeup in the world’s billionaires’ club when French luxury magnate Bernard Arnault briefly overtook Amazon founder Jeff Bezos in terms of wealth. According to the Bloomberg Billionaires Index, Arnault was valued at approximately $116 billion and Bezos at $115 billion. Although seeming minor on paper, this signaled a shift into a new era for billionaires worldwide, with a human being taking center stage in the race for short-term billionaire wealth.
It was a brief shakeup, however, with Bezos recently reclaiming his number one spot and as of July 2020, with a net worth of around $182 billion, firmly holding his position once again. Let’s take a look at the numbers and have a closer look at Bernard Arnault and his temporary spot at the top of the billionaire hierarchy.
Who is Bernard Arnault?
Born in France in 1949, to polyester manufacturer and engineer Jean Leon Arnault and Louise de Vilmorin, a well-known writer and American – French heiress, Bernard Arnault is considered to be one of the world’s most successful businessmen. Refining his vision as a child, Arnault initially set his sights on taking over the family business, before later launching on to the global stage.
In 1984, he entered the luxury goods market when he acquired French department store Boussac, which included Dior, financially saving the debt-ridden firm just in time. He turned the business around and Michael Burke, CEO of luxury giant Louis Vuitton at the time, credits Arnault with saving the Parisian fashion house. Since then, under the umbrella of Arnault’s massive luxury goods empire, his wealth has continued to skyrocket.
Bernard Arnault’s Group and Its Assets
Bernard Arnault built his empire of luxury goods the hard way. His professional holdings are held through his massive LVMH Group, which he controls as both its chairman and majority shareholder. Formally known as Moët Hennessy-Louis Vuitton, the multinational conglomerate consists of more than 70 brands, including Louis Vuitton, Bulgari, Sephora, Celine, and Givenchy. Arnault became the largest shareholder of LVMH when he merged his holding company Financière Agache with the firm in 1989, and it has been the crown jewel in his portfolio ever since.
The group’s latest earnings report showed revenue of €23.9 billion ($27.9 billion) for the first half of 2020, a 2% increase from the same period in 2019. This was intense speculation as to whether or not Arnault would be able to retain his spot as the world’s wealthiest person. However, ultimately, he was unable to hold onto his position.
Bernard Arnault’s Longterm Investments
Still, even though the world’s wealthiest crown has been reclaimed by Jeff Bezos, Arnault has plenty of other investments to help maintain his current financial portfolio, including art galleries and private equity investments.
In France, the luxury goods magnate has private investments to give him a diverse portfolio. He is the majority owner of Château Cheval Blanc winery, as well as Christian Dior (not to be confused with LVMH’s subsidiary). His stake in Chanel is also substantial, making him a key shareholder in one of the world’s most iconic fashion houses.
Additionally, the business mogul and connoisseur has been investing time and effort in developing an impressive art collection. His collection features pieces from many respected names such as Monet and Picasso and has been valued at an estimated $1 billion.
Bernard Arnault may not have retained his title as world’s wealthiest person for long, but this does not discount the fact that he is still one of the world’s wealthiest and most respected businessmen. His corporation LVMH is widely considered to be the world’s leading luxury goods group, boasting over 70 prestigious brands from fashion to watches. With multiple significant investments in sectors such as art, private equity, and wineries, Bernard Arnault is well on his way to defending his position, regardless of whether or not he is the world’s richest person at any given moment.
