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Currently, the third richest man in the world is Bernard Arnault, the chairman and CEO of luxury fashion giant LVMH. Interestingly he is the only non-American in the list of top 10 richest people in the world. His wealth has skyrocketed over the past few years with the parabolic rise in LVMH’s share price. And it’s not hard to see why they’re so profitable. It’s easy to make money when you can sell pieces of cloth for $5,000 each. While luxury brands build the perception of having the highest quality of clothing, for all practical purposes they’re not really any different than the clothes you would buy at Target or Gap. These brands are highly sophisticated marketing machines that employ every psychological trick in the book to make you believe the bag they’re selling you is worth $10,000.
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