- [Narrator] This man rubbing shoulders with the likes of Natalie
Portman, Paul McCartney and Rihanna is French business
mogul Bernard Arnault. While he might not be as
recognizable as those three, he's got more money than
all of them combined. Arnault is the world's richest person with a net worth of $191
billion at the start of 2023. - He is one of the most important
businessmen in the world, certainly the most important
in France right now. - [Narrator] He is the CEO of LVMH Moët Hennessy Louis Vuitton, which is basically the
first word in luxury. In addition to Louis
Vuitton, the conglomerate includes brands such as Dior, Tiffany's, and Belvedere Vodka. - Luxury for for me is
how can you create desire? - [Narrator] He's been in
charge of LVMH since 1989 and all of his children have powerful roles within the business. Here's Bernard Arnault built his wealth and how he plans to keep
it under family control. (playful music)
(paparazzi chatting) The richest person in the
world isn't a tabloid mainstay or red carpet regular, even if he is seen on the front row at his brands' fashion shows. - He's a guy who is somewhat shy. He's even maybe a tiny bit awkward. There's a saying, which gets
repeated to me constantly by French billionaires
and French CEOs, which is (Nick speaking in French) which basically means to live happily, you have to live hidden. - [Narrator] The beginning
of the Arnault empire starts with an acquisition, which
would become something of a modus operandi for
him over the next 30 years. In 1984, he took over
Boussac, the holding company that owned French fashion
house Christian Dior. - Christian Dior is maybe
the most recognizable and the most well-known
fashion name in the world. - [Narrator] He sold off pretty much all of the group's brands but Dior, and pulled it out of bankruptcy. In the late '80s, Dior's revival helped
Arnault a massive stake in the recently founded LVMH, of which he soon became
the majority shareholder, CEO and chairman. Over 30 years and several
acquisitions later, LVMH now includes 75 brands, covering wine, jewelry,
hotels and fashion. The European company has also expanded into China and the US
where Arnault once joined then President Donald Trump at the opening of a Louis Vuitton factory in Texas. - He's a great gentleman,
a great businessman and he's really an artist. To me, Bernard is an artist and what he's done is incredible. - [Narrator] The luxury giant now has a market value of nearly $438 billion and revenue last year
was around $86 billion. These results have
boosted Arnault's wealth and put him above the likes of big tech billionaires such
as Elon Musk and Jeff Bezos. While those men have seen
their company shares drop in recent months, LVMH's share price is up over 165% since
lows in March of 2020. Though the stock market is apparently not something
Arnault pays attention to. (Bernard speaking in French) - [Narrator] That price
boost was thanks to a surge and demand for luxury
goods during the pandemic when affluent shoppers were
stuck at home flush with cash. And more recently, China's loosening of strict COVID-19 rules. The country is one of the luxury
industry's biggest markets. - Bernard Arnault himself
has a ton of legitimacy because he built up this
company from scratch. He built this empire
through several battles. He's obviously involved in all the key aspects of the business. - [Narrator] Also involved in
key aspects of the business are his five children who are often seen with him at brand events. Let's meet the family. Arnault married his first
wife, Anne Dewavrin, in 1973 and they had two children,
Delphine and Antoine. Delphine is the newly minted
CEO of Christian Dior, while her younger brother, Antoine, is CEO of the family holding company. After divorcing Anne, Arnault
married Helene Mercier and had three more children. Alexandre holds an executive
vice president position at Tiffany's, the American
jeweler LVMH took over in 2021. Frederic is CEO of watchmaker Tag Heuer, and Jean heads up marketing development for Louis Vuitton watches. (Bernard speaking in French) - [Narrator] The Arnaults
own more than 97% of Dior, which in turn owns 41% of LVMH. The family also owns close
to 7% of LVMH directly. On top of that, they have total voting
rights of more than 60%. - So essentially what the Arnaults and what Bernard Arnault himself decides goes in that company. - [Narrator] And Arnault has taken steps to ensure his family retains
control over the empire. Last year, LVMH voted to raise
the age limit of its CEO, meaning the 73-year-old
Arnault could remain in charge until he's 80, if he wishes. He also changed the structure
of the family holding company. - The children will each have
a 20% stake in this structure and they can't sell
their shares for 30 years and it essentially will keep the shares in the family even beyond that. And it's one of the kind of favorite pastimes in
Parisian business circle to kind of watch his children and track their progress
with a view to succession. - [Narrator] Arnault has not
publicly named a successor but whoever it is will inherit a company that has successfully
navigated the pandemic amid concerns for the
future of the industry. High inflation and the war in Ukraine have prompted estimates of a slowdown in luxury good sales in 2023. And in China, a recent wave of COVID infections means
life there remains disrupted. Economists also haven't
ruled out a global recession. For now though at least, the luxury market's wealthy
customers seem happy to keep spending. - The luxury goods industry has been a good one for investors in part because global
wealth every year is rising. And so more and more people are coming into the luxury goods market each year and that's obviously good for
LVMH, for Bernard Arnault, and for people selling luxury goods. (playful music)
