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Bernard Arnault is one of the wealthiest people on the planet. His empire of luxury businesses include Dior, Louis Vuitton, Moet & Chandon, and Tiffany’s.
However, Arnault did not start any of these legendary brands. In fact, most of them were founded before he was born.
Arnault broke into the luxury business in the 80s by rescuing a failing conglomerate that held Dior in its portfolio. He then sold the rest of the conglomerate’s assets to build a war chest for more luxury acquisitions.
Louis Vuitton and Moet & Chandon were multi-generation family businesses that had gone public to create liquidity for the heirs. Unfortunately, the cost of that liquidity was an opening for corporate raiders.
Arnault partnered with Guiness, the Irish beer company, to take over two companies while the heirs were asleep at the wheel.
How can this story help you build?
Going from Zero to One is the hardest thing to do in business. There are other routes, and Arnault shows they can be phenomenally profitable.
Inheritors are unlikely to have the same edge as founders. It is a rare occurrence when fortune survives multiple generations in the same family. Therein lies opportunity for you.
Be very careful about who you partner with.
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