How to Invest in Handbags, the Luxury Asset Most Likely to Hold Value

Forget Berkshire Hathaway. These days, some are turning to Hermès Birkins.

Clockwise from top: Bottega Veneta Nappa Intrecciato Mini Jodie Parakeet, Hermès So Black Alligator Birkin, Fendi Canvas Calfskin FF Embroidered Baguette Poudre, Hermès Rose Extreme Alligator Mini Kelly 20cm .

Clockwise from top: Bottega Veneta Nappa Intrecciato Mini Jodie Parakeet, Hermès So Black Alligator Birkin, Fendi Canvas Calfskin FF Embroidered Baguette Poudre, Hermès Rose Extreme Alligator Mini Kelly 20cm .

Photographer: Joanna McClure for Bloomberg Businessweek

September 1, 2022 at 11:00 AM GMT+5CorrectedSeptember 26, 2022 at 6:40 AM GMT+5

With the stock market roiling, luxury goods—especially designer handbags—are becoming a hotly sought-after investment commodity. One July study from the Business of Fashion said 40% of US consumers had bought or were planning to buy one, helping bolster the category from a global market of $72 billion this year to a predicted $100 billion in 2026.

Buy them to store and trade, rather than tote, and that as-new purse could offer an impressive return on investment: In June a study from Credit Suisse Group AG showed that Chanel bags rose in value 24.5% from the previous year. Those by the house’s late designer Karl Lagerfeld are especially coveted.