Luxury as an Asset Class: Daniel Langer on Why Hermès Bags Are Outperforming the S&P 500

As investors chase AI stocks and tech-driven gains, ultra-luxury handbags have quietly outperformed the broader market. In a recent Business Insider feature, Daniel Langer, CEO of Équité and faculty member at Pepperdine Graziadio Business School, explained why certain Hermès bags have surged far beyond the S&P 500.

According to the report, the Mini Kelly II appreciated more than 300% between 2022 and 2025, while the Birkin rose 285%, compared to the S&P 500’s 43% return. Langer argues this performance is strategic, not accidental.

He attributes Hermès' strength to disciplined scarcity, rigorous client vetting, and long-term brand stewardship. "It is very similar to when you think about an investment into a stock," Langer told Business Insider, noting that buyers invest based on belief in future brand value and trust in management.

Langer also highlighted how resale platforms like StockX have increased pricing transparency, positioning bags such as the Birkin and Kelly as alternative assets. He added that brands like Patek Philippe rival Hermès in protecting long-term value.

Reflecting on the returns, Langer remarked he wishes he had purchased a Hermès bag instead of the company’s stock, underscoring his view that, in today's market, disciplined luxury can rival Wall Street.

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