Hermès The Eternal Moat
Hermès ($RMS) is down 45% from peak. The world's most durable consumer business, with a moat rooted in human psychology, 187 years of craft, no real competitor, and 41% operating margins. World indices sit at near record valuations: CAPE at 42, Buffett Indicator at all time highs. One asset corrected hard. The other ran to a record. Rotating from expensive VWCE into the highest quality compounder in consumer goods at a historic discount. The odds favour the rotation.
5 jun