Estee Lauder sells $15 billion worth of beauty products per year, with approximately half of the revenues coming from makeup and half coming from skin care. It has increased in value from $1,000 in 1946 to $58 billion today, for an annual compounding rate of 24.7%. You would have been better off finding Estee and Joseph Lauder a year after WWII ended and demanding that you could join them as an investor in their company than you’d have been finding Warren Buffett at any point in his life and demanding the same.
The reason why great fortunes can be made in the beauty sector is because the profit margins are extreme once a desirable brand is created. As you know, the purpose of a successful is that you can create pricing power for yourself to charge more for a chemical combination of elements X, Y, and Z because of the … Read the rest of this article!