Barriers to Entry
Why have luxury goods companies like Möet Hennessy Louis Vuitton and Hermes been long-term winning companies and stocks? They create a barrier to entry to competitors through two methods.
The first is signaling. What do the products mean to you and what do you want their products to signal to the rest of the world.
Heritage & Durability
The second is heritage. These brands have been around for a long time. If you want to tie yourself to these historical events and to have your goods mean something in the future then you want to own these older luxury brands instead of newer trendier brands.