The Richest Man, His Business & His Children

Let’s talk about the business of the world’s richest man.

Bernard Arnault’s business empire, Moët Hennessy Louis Vuitton (commonly known as LVMH), may not be as impressive in valuation as the tech behemoths in the United States, but it is a big deal in Europe.

On Monday, it set a European record by surpassing the $500 billion milestone. This caught the eye of analysts because while Big Tech has suffered as a whole in 2023, LVMH is thriving with its old-world opulence. People are buying its brand of champagne called Moët, and the sales of these bottles have made its 74-year-old French owner wealthier than Elon Musk, the chief troublemaker at Twitter.

But it’s not just the champagne bottles; Arnault’s $212 billion wealth has been amassed through the booming business of other luxury brands, including Christian Dior and Louis Vuitton.

For now, Arnault continues to ride on the fat margins that luxury goods offer. However, like all billionaires of his caliber, he is paying attention to his succession. He has installed his five children in LVMH’s upper echelons:

• He appointed his 48-year-old daughter Delphine to head up Dior, LVMH’s second-biggest brand, in January.
• A month before that, he promoted his 45-year-old son Antoine to run LVMH’s holding company.
• His son Alexandre (30) runs Tiffany & Co.
• Another son Frédéric (28) runs Tag Heuer.
• His youngest son, Jean (24), runs Louis Vuitton’s watch division.

Curiously, his last three sons studied at top engineering schools, a qualification their father has called crucial to his own success. But that does not mean he will choose any of them as his successor. Mr. Arnault has given no indication whom he will choose.

Before they were placed in their positions, Arnault paired them with top executives in the company who kept an eye on their performance. He would then ask about some of their character traits, or if there’s a need for a little correction.

Now, once a month, Bernard Arnault gathers his children for lunch inside a private dining room at the headquarters. The meal, which lasts exactly 90 minutes, begins with the French billionaire reading aloud discussion topics he has prepared on his iPad. He then goes around the table, asking each of his five adult children for advice.

Arnault is “above all a pragmatic man,” said Sidney Toledano, one of Arnault’s top lieutenants who led Christian Dior for many years, to the Wall Street Journal earlier this month. “You have to choose whoever is best at a given point in time considering the challenges. It’s what he does with his managers, his advisers, and I think it’s what he’ll do with his children.”