Monday, December 04, 2006

Insider Trading

We've always been told that luxury designer goods are investment pieces. This is actually true in a sense. Designer bags, shoes, and clothing tend to last an absurdly long period of time. Such items are the kind that will last you a lifetime, heck maybe even longer!

However, ask any banker or wealth advisor and they'll tell you, that though luxury goods are nice to have, they don't generate income, and hence are not investments.

Well, now you can thumb your nose at them! You can say not at all! A lot of the high fashion companies are publicly listed and according to, the latest to join the list is Salvatore Ferragamo. You may not buy the shoes, but you can always sign up for shares!!! James Hurley, luxury goods analyst for Telsey Advisory Group, an independent research firm based in New York City is confident the Ferragamo family and investors alike will reap the benefits of an IPO*.

"You've got very a strong brand that has iconic products and heritage that can be leveraged on a global basis," he says. "For investors, that's appealing, because there is some value and security in owning a portion of a strong brand--you've got global growth prospects."

While you're at it, save some of your hard earned cash and prepare to splurge on Prada. According to WWD, Prada chief Patrizio Bertelli has pulled the plug on an initial public offering of the group four times, but now says he is looking at 2008 for a potential IPO of the luxury goods group.

While the less forward thinking fashionistas are stocking up their closets with the goodies, you're getting the goodies via stocking up on shares. Not to mention, monitoring your stocks won't be a much of a chore because you'll intuitively know if the current collection bodes well on your stock's performance!

You smart shopper you!

*IPO stands for Initial Public Offering, wherein a company first sells its shares to the public

(photo courtesy of

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