The founder of NPD Luxury Lab, Marco Ramundo, talks about the opportunities that arise when combining passion and business, luxury and profit.
Warren Buffet famously said “If you don’t understand it, don’t invest in it”. It’s good advice but it’s generally ignored, largely because many investments are difficult to understand.
Investing in Luxury is very often an exception to this rule. In fact, many investors are probably already experienced users of many luxury products and services, they have a unique insight into them and have an opinion about them. This means that, in this case, the decision to invest is an informed one, and that gives you an advantage. Moreover, if you’re looking for a market that promises to be around for a long time, you’ll find luxury goods hard to beat. As a matter of fact, if you look at the S&P Global Luxury index over ten years, the total return (capital gains plus income) in US dollars is an outstanding 13.7% a year. That’s over 3% more than the 10.4% of the S&P Global 1200, an index tracking the overall performance of stocks worldwide. Few professional fund managers have been able to beat markets asa a whole so comprehensively and consistently over such a long time period.
Looking at the shorter time periods of five and three years, the luxury goods sector’s performance is even stronger and this kind of trend can even be improved when luxury is combined with innovation and high tech.
NPD has a wide range of experience in advising on and investing in successful luxury brands like Dynamiq Yachts, Mazzanti Automobili, Futur-e Foiling, Bellavista Wine, Versace and many others. Given the data above, they have taken the decision to launch a new initiative called NPD Luxury Lab which will invest in a richly diverse portfolio of some of the highest potential businesses in the luxury sector like yachting, hyper cars, jewels, wine & spirits and more.
The fund-raising phase will start in the 4th quarter of 2021 and we are sure it will be a great opportunity for investors who want to increase their involvement in the luxury sector.
In fact, NPD Luxury Lab will have a highly innovative governance model in which investors will be protagonists. NPD, as the operator of the investment vehicle, w ill perform a detailed and investment-driven screening activity, submitting the potential targets to the “Investment Committee” in which investors will be involved. They will then have the opportunity to analyse and approve the investment.
In short, the luxury sector is just so much more interesting than almost any other because you already know a lot about it. That’s why it offers some of the most fascinating and exciting investment opportunities in the world and, best of all, the results can be as attractive as the subject matter.
NPD s.r.l. is a management consulting firm founded
in Brescia (Italy) in 2013 that advises luxury sector companies on strategic management.