LVMH's Netflix Mistake: 20% Stake Could Have Been Worth $60 Billion

Bernard Arnault, CEO of LVMH, has built an empire in luxury and tech, including Google. However, he missed a $60 billion opportunity by selling his 20% stake in Netflix early. In 1999, as Netflix's largest investor, Arnault bought shares when the DVD rental company was worth $500 million. Today, Netflix is valued at $300 billion, and Arnault admits he should have held onto his shares. 'It increased 10-fold, but I sold too early,' he said. Arnault also sold Apple and Facebook shares prematurely, admitting, 'I always sell too early.' This mirrors broader investor behavior, where no perfect timing exists.

Global markets have observed a 100x increase in tech stocks since Arnault's Netflix decision, reigniting debates on early selling risks.