French business magnate Bernard Arnault, the mastermind behind the luxury conglomerate LVMH, has dethroned Elon Musk as the world’s wealthiest individual, according to Forbes’ real-time billionaires list. Arnault’s net worth skyrocketed to $207.8 billion, experiencing a remarkable surge of $23.6 billion on Friday, eclipsing Musk’s $204.5 billion fortune.
The turning point occurred as Tesla, Musk’s electric car company, witnessed a 13% decline in its stock on Thursday, resulting in an over $18 billion reduction in Musk’s net worth. In contrast, LVMH shares surged by over 13% on Friday, riding high on the wave of optimism fueled by robust sales reports. LVMH’s market cap reached $388.8 billion, while Tesla’s stood at $586.14 billion.
Bernard Arnault, aged 74 and serving as the CEO of LVMH, has meticulously built his luxury empire over nearly four decades. His strategic acquisitions and nurturing of iconic brands such as Louis Vuitton, TAG Heuer, and Dom Pérignon have been central to his success. Arnault has also orchestrated a family-run business, involving his five adult children, akin to the dynamics portrayed in HBO’s popular show “Succession.”
In April, LVMH achieved a historic milestone by becoming the first European company to surpass $500 billion in market valuation, underscoring the enduring allure of luxury goods even in challenging economic times. Arnault’s initial ascent to the top spot occurred in December 2022, a period marked by the tech industry’s challenges juxtaposed with the resilience of luxury brands in the face of inflation.
The acquisition of Tiffany & Co. by LVMH for nearly $16 billion in 2021 stands as the largest luxury brand acquisition in history. Additionally, Arnault’s venture capital firm, Aglaé Ventures, backed by his holding company Agache, invests in prominent businesses like Netflix and ByteDance, the parent company of TikTok.
