Are Birkins Better Investments Than the Stock Market? The Truth About Luxury Investing with Dana Auslander

The conversation between Nicole Lapin and Dana Auslander reveals how Hermès Birkins and Kellys have established themselves as high-yield investment assets, rivaling traditional stock market returns, especially when purchased strategically and held long-term.

Hermes Birkins and Kellys Yield Higher Returns Than Stock Market Investments When Bought Strategically and Held Long-Term

Stock Investments Double in 7 Years at 10% Return, Birkin Funds Double In 30 Months

Nicole Lapin notes that, historically, the stock market provides an average annual return of about 10%, so it typically takes seven years to double your investment. In contrast, Dana Auslander explains that her Birkin investment fund achieves returns of 35–40% annually, with the fund doubling investors’ capital in just 30 months—less than two and a half years. The first fund, after 15 months, sold 25 out of 50 bags and expects a 1.5X return, while a second fund launched in November is on track to achieve a 2X return in 30 months. Auslander states that such rapid, reliable returns are virtually unavailable in other asset classes, even AI.

Birkin Bag Sells For $10.8m, Highest Handbag Price, Showing Rare Item Value

The exceptional status of Birkins at auction underscores their investment allure. Auslander recounts witnessing Jane Birkin’s own Birkin bag selling for $10.1 million at auction, following a bidding war—an event she attended in Paris. Another rare Birkin fetched $10.8 million from a Japanese reseller, setting the record for the priciest handbag ever sold. These “provenance” bags—Jane Birkin owned only four or five—achieve astronomical prices due to their rarity and historical significance, rivaled among fashion items only by Dorothy’s red slippers, which sold for $30 million.

Hermes Styles’ Investment-Grade Status Hinges on Acquisition Price

Birkins and Kellys Are Investment-Grade, Unlike Evelyn or Constance Bags

Auslander highlights that not all Hermès bags are created equal in investment terms. Only Birkins and Kellys qualify as “investment-grade” handbags. Other Hermès styles, like the Evelyn or Constance, do not command the same market perception and are excluded from serious funds. The value of Birkins and Kellys is driven by their “manufactured scarcity”—they are rare by design due to Hermès’ store policies.

New Birkins Command Higher Premiums Than Pre-owned, With Inventory Trading at 1.8 to 2 Times Retail Price, Below Pandemic Highs of 2x

A new Birkin, still in the box with the signature orange packaging, can command premiums close to twice its retail price, although since the COVID pandemic peak, this multiple has corrected to about 1.8–1.9 times retail. This is down from the pandemic-era highs when new Birkins easily went for 2X retail on the secondary market.

Pre-owned Birkins See 10-15% Premiums Over Retail, Making Acquisition Costs Key for Positive Returns After Resale Fees

Pre-owned Birkins typically sell for a 10–15% premium over retail, provided they are in good condition. However, resale platforms take sizable consignment fees, making acquisition price the most important factor for ensuring a positive net after these deductions. Selling a Birkin individually often reduces net returns to break-even or even a loss, unle ...

Hermes Drives Demand With Birkin and Kelly Exclusivity Through Scarcity Policies

Hermès is the quintessential example of a Veblen good, where rising prices correlate with increased consumer demand. Dana Auslander explains that Veblen goods—unlike most products—become more desirable as their prices go up, tapping into psychological prestige associated with exclusivity. The Hermès Birkin and Kelly bags, alongside brands like Patek Philippe and Ferrari, typify this phenomenon in the luxury space. These items rely on extreme supply constraints and reputation, not inherent rarity or precious materials; their scarcity is carefully manufactured by the brand itself.

Eligibility to purchase a Birkin or Kelly requires an annual spend history of $25,000 to $50,000 on other Hermès goods. Buyers cannot simply walk into a Hermès boutique and purchase a quota bag. Instead, they must develop a relationship with the brand and sales associate, who ultimately decides whether and which bag a client may be offered, adding another layer of exclusivity. Birkins and Kellys are neither publicized nor openly available, making the process feel ceremonial and heightening their desirability. The allocation process is opaque, and even details like how many bags each store receives are undisclosed.

Despite customer speculation or hope for change, Hermès has maintained these supply restrictions since the Birkin was created 47 years ago. Auslander stresses that this policy has not shifted in nearly half a century and is unlikely to do so in the next decade.

Secondary Markets and Social Media Amplify Demand For Quota Bags, Creating Digital Ecosystems and Celebrity Influence Independent of Hermes's Marketing

The rise of resale platforms such as The RealReal, Rebag, and First Dibs since around 2012 revolutionized how luxury goods circulate. While eBay and Amazon had long existed in the digital resale space, luxury bags only became mainstream with the arrival of specialized marketplaces. Hermès remains uninvolved in secondary sales, yet demand and hype for its bags have soared thanks to these platforms and a burgeoning online ecosystem.

Social media channels like TikTok and Instagram have massively amplified Birkin and Kelly culture. Influencers, solopreneurs, and luxury enthusiasts create unboxing videos, authentication guides, and showcase aspirational lifestyles, sparking organic demand among younger audiences like Gen Z, Millennials, and even Gen Alpha. Celebrities and ordinary people alike display their Hermès acquisitions, cementing their status as cultural symbols. On platforms like TikTok, Birkin unboxings and tips for navigating Hermès’s process abound.

Auction platforms have also capitalized. eBay launched live shopping events focused on luxury, dropping Birkins hourly and attracting millions. The spectacle and the promise of accessibility ...

Luxus Fund: Birkin and Kelly Investment for Accredited Investors

Luxus, founded in 2021 by Dana Auslander, a seasoned private equity and hedge fund executive, leverages deep institutional expertise and luxury market knowledge to offer investors exposure to Hermès Birkin and Kelly handbags as an asset class. Auslander’s background includes fund formation at Schulte Roth, senior product structuring at Blackstone, and experience with top hedge funds. Inspired during the pandemic by the rise of fractional art investment models, Auslander built Luxus using institutional vehicles and secured investors like Christie’s Ventures.

The fund operates similarly to private equity or real estate funds, accepting capital from accredited investors to build a portfolio of luxury handbags. Initial minimum investment is $100,000, with plans to increase this to $250,000 due to high demand. Most investors are family offices and ultra-high-net-worth collectors seeking diversification alongside art, cars, and wine. Investors must self-attest to accredited status, typically $200,000 annual income ($300,000 for couples), and prove understanding of risk and illiquidity, with additional screening to ensure alignment with the high-end consumer luxury community.

Fund One deployed $1 million in Birkin and Kelly bags and achieved a 26% net return (around 35% gross, with fees negotiated down), selling 25 of 50 bags and projecting a 1.5x return in 15 months. Fund Two, with a $2 million target over 30 months, aims for a 2x multiple of invested capital (MOIC). Both funds are outperforming benchmarks, and a third $10 million fund is planned for launch.

Fund's Thesis: Capture Spread Between Primary Retail Prices and Secondary Market Valuations, Not Long-Term Appreciation

The Luxus investment thesis targets the price spread between primary retail and secondary market valuations, rather than relying on long-term appreciation. Bags are acquired at attractive prices through proprietary networks, then authenticated, insured, and relisted for sale via Sotheby’s, The Realreal, First Dibs, and eBay. The goal is to sell at least 60% of inventory within 60 days, maximizing capital recycling and sales velocity. Luxus aims to transact 3–4 bags per week, with an ideal turnaround of less than 48 hours per bag, capturing value primarily through active trading and price differentials rather than waiting for years of appreciation.

Fund Manages Portfolio By Selecting Appealing Styles, Colors, and Conditions For Buyer Segments and Channels

Bag selection is tailored to different buyer segments and sales channels. Luxus sources new-in-box inventory with receipts and signature orange Hermès boxes for collectors, while also acquiring pre-owned bags to appeal to younger and Gen Z buyers. Bags are matched to suitable channels: rarer pieces go to Sotheby’s and collector-focused auctions, while other inventory is listed on eBay or featured in celebrity sales like Gwyneth Paltrow’s. To further drive returns, pre-owned Birkins are temporarily rented to movie studios in New York before their final sale, generating additional yield.

Investor Access Limited To Family Offices, Ultra-High-Net-worth Individuals, With Plans for Broader Inclusion

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Counterfeit Birkins Risk Consumers and Investors in the Secondary Market

The secondary market for Hermès Birkins is fraught with risk due to the proliferation of sophisticated counterfeits. Dana Auslander warns that fakes have become extremely convincing, and buyers must be vigilant. She notes that authenticating a Birkin often hinges on subtle details such as the stitching, placement and style of Hermès' line stamps, and even scent. Expertise in these areas is crucial because counterfeiters continue to improve their craft, making errors harder to spot.

Authenticators are essential to the resale process, and Luxus, a professional reseller, implements a three-point authentication check using their own staff and partners. Nevertheless, Auslander acknowledges that some counterfeit bags may still pass through, given the sheer global volume of Birkins and Kellys. Despite claims in online videos from China that Birkins are manufactured there, both Auslander and Nicole Lapin are unequivocal that all authentic Birkins and Kellys are made exclusively in France. Any assertion that genuine Hermès bags are produced elsewhere is categorically false.

High Fees and Commissions on Secondary Platforms Reduce Consumer Returns, Undermining Single-Bag Purchase Investment Thesis

Participating in the secondary market comes at a cost for individual consumers. Resale and consignment platforms typically charge significant fees, often ranging from 15% to 35% of the resale price, which can erode or even eliminate profits for individual sellers. Nicole Lapin shares her own experience with selling Birkins via The RealReal, emphasizing that hefty commissions mean sellers often break even or may even lose money compared to retail prices.

Professional buyers like Luxus are able to negotiate these fees down to much lower rates—sometimes as low as 5% to 10%—leaving ordinary consumers at a disadvantage. According to Auslander, even after negotiating, most consumers will face commissions of 18% to 20% over the bag's lifetime, illustrating the difference in margins between institutional sellers and individuals. In addition, Hermes's strategy of raising retail prices does not always translate into higher resale premiums, as the compounded fees introduced by platforms “margin upon margin” eat away at potential gains.

Liquidity Challenges Persist Despite Strong Turnover, Especially for Uncommon Colors, Sizes, or Conditions

For highly desired Birkin and Kelly styles and colors, market turnover is relatively robust. Dana Auslander notes that Luxus sells about three to four bags per week, averaging a sale every 48 hours. This implies that, for in-demand items, the secondary market is quite liquid compared to other luxury assets, though it still falls short of the liquidity found in public equities.

However, liquidity is not guaranteed for every consumer. If a s ...

Women investors are increasingly considering the role of luxury assets both as vehicles for wealth building and as a means to gain greater financial independence. The discussion today centers on how traditional and alternative luxury investments, from watches to art and Hermès Birkins, compare both in terms of returns and in their broader significance for women’s financial empowerment.

Luxury Investment Categories: Watches, Art, Wine, Jewelry vs. Birkins

The luxury investment landscape offers a variety of categories, each with distinct profiles for returns and risks.

Luxury Watches: 7/10 as Investments, Market Corrected After FTX Collapse Liquidation

Luxury watches rate a 7 out of 10 as investments. During the crypto boom, the influx of crypto wealth led many “crypto bros” to purchase high-end watches, especially Rolexes. However, the FTX crypto exchange collapse forced a mass liquidation as owners sold their watches to shore up losses, causing the market to plummet. Despite this correction, narrowly defined selections within the category continue to perform well as long-term investments.

Contemporary Post-War Art: 9/10 Investment vs. Older Art: 4-5/10; Blue-Chip Pieces Offer Strong Returns but Require Expertise

Art, particularly post-war and contemporary pieces, is rated a 9 out of 10 as an investment—especially for “blue chip” works that have historically shown strong returns. However, older and less in-demand genres rate lower, typically 4 or 5 out of 10, especially as the market comes out of a recent slump. Expertise is essential, as high-value, blue-chip art can be lucrative, but navigating the market requires specialist knowledge.

Wine Rates 2-3/10 Due to Declining Consumption, Glp-1 Drug Introduction, and Storage Oversupply, yet Vintage Wine Remains a Passion Investment

Wine as an investment now trails behind, with a rating of 2 or 3 out of 10. This is largely due to younger generations (Gen Z, Gen Alpha) drinking less, and the introduction of GLP-1 drugs that suppress appetite and alcohol consumption, leading to a widespread storage oversupply. Passionate collectors continue to pursue vintage wines, but wine investment is volatile and currently on a downward trend, reflected in recent struggles for beverage-heavy conglomerates like LVMH.

1930s-40s Cartier, Bulgari & Van Cleef Jewelry Rates 9/10; Contemporary Pieces Face Metal Price Volatility

Vintage jewelry, especially from the 1930s and 1940s by Cartier, Bulgari, and Van Cleef & Arpels, holds a 9 out of 10 investment value—collectors consistently seek these timeless pieces. In contrast, the modern jewelry market is challenged by extreme precious metal price volatility, making costs unpredictable for both producers and investors. Still, vintage jewelry remains highly prized for its enduring appeal and stable returns.

Hermes Excels in Luxury By Targeting Ultra-Wealthy, Not Broadening Access

Hermès’ strategy offers a contrast to other major luxury brands. Unlike peers who expanded access to appeal to aspirational buyers, Hermès has cultivated exclusivity—focusing directly on ultra-high-net-worth clientele.

Lvmh and Kering Lost Market Share; Luxury Brands Can't Serve Ultra-High-Net-worth and Aspirational Segments Simultaneously

During COVID, many luxury houses attempted to democratize their brands and open entry points for aspirational buyers. This backfired, as evidenced by the market struggles at LVMH and Kering, which lost share and faced valuation hits when they could not simultaneously cater to ultra-wealthy and aspirational segments effectively.

Richemont, Prada, Hermes Thrive By Targeting Affluent Clientele, Avoiding Democratization

In contrast, Richemont (owner of Cartier and Van Cleef), Prada (which now includes Versace and Miu Miu), and Hermès all chose to serve an affluent clientele, shunning broader democratization. These brands have thrived by consolidating their luxury positioning and eschewing lower-tier entry points.

Luxury Conglomerates Overexpanded In Middle East, Geopolitical Tensions Hit Growth and Valuations

Recent geopolitical tensions and the collapse of planned luxury expansions in the Middle East have hit growth and equity valuations. The Dubai Mall, one of the world’s largest, and luxury projects in Abu Dhabi and Riyadh were key targets for store expansion prior to recent wars—b ...