For generations upon generations, the very wealthy have bought expensive gifts. Whatever the tile – the Lords, Dukes, Czars, Raj’s, Emperors bought items because they both had the money and the items are truly wonderful. In the example of jewels, they  came from Paris because that is where they were set in beautiful amazing jewellery. The owners of the jewellery stores and fashion houses dealt with anyone who had the money to spend. This statement is true today as it was three hundred years ago as it will be true two hundred years from today. Two hundred years plus ago, the Haitian plantation owners were the biggest customers of the Paris fashion houses. The plantation owners owned slaves and at the time the land was very, very fertile, resulting in great surplus income being produced and spent in the fashion houses of Paris. If you switch you time horizon to now, many middle income people buy a lottery ticket and if they won the large prize, after paying their debts, many fantasy about buying a luxury item or two. We all have our idea of what luxury brand we would like to own – be it cars, jewellery, art or something else. One method to do investment research is look at what countries or where your favourite luxury brand is selling. That should give you ideas of where there are opportunities.

Linking to dividend producing stocks, luxury brands have a timeless appeal for the brand tends to keep its value and often increases over time. The reason is the low production runs or one time designs. There is another story about people trying to fake the luxury brands, but that is a different story, just consider the constant appeal. The brands may not be the best stocks to hold, but if you own dividend shares which produce a constant income over the years, both the income flow and capital appreciation may allow you to buy or rent the luxury item you always wanted.

There are more questions than answers, till next time – to raising questions