Luxury goods company LVMH can now be bought on the JSE.

HILTON TARRANT: Adam Myers from Investec joins us now. Adam, this week, looking at LVMH, the world's largest luxury goods company.

ADAM MYERS: Yes, hi, Hilton.

HILTON TARRANT: A lot of listeners will know LVMH as a company that owns Louis Vuitton as well as Moët and Hennessy - a number of great brands, but not the only four in the company.

ADAM MYERS: Yes, absolutely. I think that people don't realise how many of the champagne brands, for example, form part of that stable. You've mentioned Moët and Chandon. They've also got Dom Pérignon, Veuve Clicquot, Krug. They also have a number of the whisky brands. Glenmorangie is theirs. So they are very well entrenched in the spirits industry. They also have watches. most notably Tag Heuer and Zenith, Christian Dior. They've got a wide range of cosmetics and their real strength is in the fashion sector, which is obviously dominated by their Louis Vuitton brand.

HILTON TARRANT: Adam, a lot of South African investors and the public will know Richemont, one of our own luxury goods companies from this country. How do the two compare?

ADAM MYERS: Well, on a like-for-like basis - Richemont is obviously listed in Switzerland. But if I were to translate the Richemont earnings into euros, on a like-for-like basis they have performed reasonably similarly. The share prices have performed quite similarly as well. However, going forward, Richemont is trading at about a 0.8% yield, while Louis Vuitton Moët Hennessy is trading at around a 2.1% yield. So it looks like it offers better value going forward. The share price has recovered from the lows, around €39 in December, to around €75 where we currently are - although earnings are slightly lower than where they were in 2006 and the dividend yield is significantly higher.

HILTON TARRANT: Adam Myers is from Investec.

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