Do you want to know Who is Bernard Arnault? How did Bernard Arnault get rich? Who is the richest person in the world?
|Name:||Bernard Jean Étienne Arnault|
|Profession:||Entrepreneur, Business magnate, Business executive|
Bernard Arnault is a French business tycoon and businessman, he has become the richest person in France and now in the world. Arnault has been working as the Chairman and Chief Executive Officer of LVMH Moët Hennessy Louis Vuitton Company for three decades. He is also the main shareholder in this company. Arnault inherited all the fortune from his father, the skills of being a successful businessman are in his genes. He completed high school and enrolled at the Ecole Polytechnique and got an engineering degree. After his graduation, he joined his father as an engineer.
Arnault decided to expand the company to achieve more success and exposure. He agreed with his father to direct the focus of the company to the real estate sector, Arnault got major success in this area. With the time being, he started to buy other big companies like Le Bon Marché and Christian Dior. Louis Vuitton company was created when two companies got merged, he invested a lot of money in the shares and became the first shareholder of the company. He got selected as chairman of the executive management board, Arnault set forth an expansion plan. He takes his company to be in one of the biggest luxury groups in the world.
Bernard was born Bernard Jean Étienne Arnault on 5 March 1949, in France. As the son of Jean Leon Arnault, he got the business sense at a young age. His father was the owner of the prestigious civil engineering company, Ferret-Savinel.
He got his early school education from Maxence Van Der Meersch High School in Roubaix. Arnault entered the Ecole Polytechnique and graduated with an engineering degree in 1971. Afterward, he proceeds to take care of his father’s business.
Arnault joined his father’s business as soon as he finished college. He thought of expanding the company and persuaded his father to shift the focus of their business to other areas. They got almost 40 million French francs via the liquidation of their construction business. Arnault decided to invest all that money in the real estate sector, which was nourishing at that time. The company, known as Ferinel, was so successful and preferred by many people for the accommodation.
He became the director of the company in 1974 and then CEO in 1977. Arnault got the presidency of the company after his father in 1979. When the French socialists came to the authority in 1981, Arnault migrated to the United States along with his family. He was always good at taking his business to the top in Florida. He started to expand his family’s business in the U.S slowly. With the shift of political power in France in 1983, an economically friendly government came and made him go back to his home.
Boussac Saint-Frères, a textile firm that went bankrupt, saw an opportunity in the company. The textile firm holds other companies as well like the couture house of Christian Dior. Arnault joined hands with Antonie Bernheim, who was serving as managing partner of the investment firm of Lazard Freres. He invested almost 15 million along with the $80 million, arranged by Bernheim to buy Boussac Saint-Freres. With this purchase, Arnault sold major assets of the company, leaving just Christian Dior and Le Bon Marche stores. Arnault managed to become the CEO of Dior in 1985.
Arnault got almost $400 million after selling the Boussac assets. He was asked by Henri Racamier, the chairman of LVMH company, to invest in the company.
He decided to invest through a combined partnership with Guinness PLC, which was holding 24% of the company’s shares. Bernard kept on buying more shares and spending millions and millions.
In 1989, Bernard got control of 43.5% shares of LVMH. He became the chairman of the executive management board by voting. The first thing he did after becoming the chairman was to fire the top executives of the company, to give a chance to the new talent. He has a reputation for terminating employees when not satisfied with their services. Arnault expanded the business and gained control of many other companies like Loewe, Sephora, Thomas Pink, and perfume firm Guerlain.
Following are the companies of Bernard
Bernard’s takeover of LVMH was the point, he rose to success and fame. Arnault uses his business skills, determination, and intelligence to ensure the success of his company. Many other big brands got inspired by his strategy and started to expand their business.
Bernard was appointed as a Commander of the French Legion of Honour in 2007. He was made Grand Officer of the French Legion of Honour in 2011. Arnault was presented with the Corporate Citizenship award from the Woodrow Wilson International Centre for Scholars in 2011.
Arnault tied the knot two times. He shares two children with his first wife and three children with his third wife. Arnault’s second wife, Helene Mercier is a pianist by profession
The Bernard Arnault Net Worth 2020 is $198.9 billion Now the real-time Bernard Arnault net worth 2021, the chairman of LVMH (Louis Vuitton Moet Hennessy) is $198.9 billion as same as the net worth in 2020. He is currently the richest man on the earth according to the Forbes Billionaires list.
He has been quite active in Philanthropy through his company LVMH. He donates a lot of money for scientific, medical research, and humanitarian services, like the Princess Grace of Monaco Foundation, Save the Children, and the Foundation for Hospitals in Paris.
Belmond owns 46 hotels, trains, and many different river cruises.
|● He expanded his business by buying the prestigious Christian Dior in|
|● Arnault’s five children have been working in LVMH (Delphine, Alexandre, Antonie|
|, and Frederic).|
In 1984, Bernard found out that Christian Dior was on the market list. As of that time, he just had experience in the construction firm of his grandfather. Arnault had no experience in the fashion area, but he decided to invest in Christian Dior. He thought of buying this company and taking 15 million dollars from his family. Lazard Freres provided him with $45 million and bought Boussac, the parent company of Christian Dior. That was the point, Arnault paved the pathway of success for himself and his company.
When he bought the company, he decided to revolutionize the company and fire over 9000 employees, and sold off textile operations and disposable diapers for almost 500 million dollars. That covers the total cost of his investment and opens the doors to buy more companies. He bought the prestigious Louis
Vuitton Moet Hennessey, the biggest spirit company and fashion house in 1990.
Afterward, he bought Kenzo, Celine, Sephora, Marc Jacobs, Gucci group, Givenchy, Bulgari, Tiffany & Co, Hermes, Fendi, and Tag Heuer. He got more than 70 brands under the famous LMVH company.
Bernard, Chairman, and CEO of LMVH bought the shares of the company recently. The stock market chart shows that the value is not much spiking high despite its higher rating, Arnault is determined that his company would get more and more success.
LVMH has quite an impact on the emerging economy and e-commerce, a refreshing start during the ongoing pandemic. According to Bernard Arnault “Crises make us stronger and our Maisons have experienced the fair share of them during the decades in existence, but as long as we keep learning from them, they can be powerful drivers for the years of growth”. In every aspect of the company whether fashion and leather goods to wine, the profit ratio spiked. Wines and Spirits sales increased by 29% between Q1 2020 and 2021. The sales of Watches and Jewellery spiked up to 138%. Many people suffer financial restraints during this pandemic, everyone’s life gets affected by restrictions.
Their valuation claim comes out to be P/E of 37 for 2021 and 32 for 2022. Even though this is quite a demanding valuation and depends on the growth and success of the company. Investors can utilize their money without worrying much about the investment. LMVH is a goldmine for long-term investors rather than day-to-day traders.
If we talk about the luxury market, its value soared high during the ongoing pandemic. When the number of consumers increased in this area, LMVH got more popular. This sales increase is more common in emerging countries, which shows a +26% growth in Q1 2021 sales for Asia versus the same time in 2019. Digitalization and E-commerce have played the most important role in the growth of the luxury market. Luxury brands are reluctant to take part in such investment, which can harm their image in the market. But now the businesses like LVMH take the opportunity and started to invest. Online business is a new opportunity for expanding the new customers and market area. If you want to make a good image of the company, follow the way which LVMH follows.
As of Forbes’s real-time billionaire’s list, Bernard Arnault is at the top position with
$191.7 billion net worth so the richest man in the world in 2021 is Bernard Arnault, leaving behind Elon Musk ($156.4 billion) and Jeff Bezos ($187 billion). The ranking spike is due to an increase in LVMH’s stock market price, which increased from 3378.9 EUR a year ago to 655.60 EUR. Arnault’s fortune grew by over $110 billion since last year. Now, Bernard Arnault is the richest man on the planet earth.