While you’ve been obsessing over whether to buy more NVIDIA or finally diversify into something boring like bonds, there’s been a quiet revolution happening in the world of luxury accessories. And no, I’m not talking about crypto wallets—I’m talking about actual wallets. Well, handbags. Really expensive handbags.
Here’s the plot twist that would make even the most seasoned Wall Street trader do a double-take: Hermès bags have been absolutely demolishing the stock market. We’re talking about purses that cost more than most people’s cars outperforming your carefully curated portfolio of tech stocks.
The star of this financial fashion show? The Hermès Mini Kelly II, which sounds like a luxury car model but is actually a handbag that returned over 300% from 2022 to 2025. Meanwhile, the S&P 500 managed a respectable but comparatively wimpy 43% return. That’s right—your grandmother’s advice about investing in quality leather goods might have been the best financial tip you never took.
The iconic Birkin bag wasn’t slouching either, appreciating 285% in the same period. At this point, you’re probably wondering if you should liquidate your 401(k) and start a handbag collection. (Spoiler alert: probably not, but the math is tempting.)
So what’s driving this leather-bound gold rush? It’s Economics 101 with a designer twist: artificial scarcity meets genuine demand. Hermès has turned exclusivity into an art form, complete with waiting lists that make getting a reservation at that trendy restaurant look easy. They literally vet potential buyers like they’re applying for a mortgage.
“Many people will buy Birkins, and they will literally just keep them in their home, like they are literally assets,” explains Amrita Bashin, CEO of retail resale platform Sotira. “It’s like buying gold.” Except gold doesn’t come with a dust bag and the ability to make everyone at brunch incredibly jealous.
The genius here is that Hermès has created what every investor dreams of: an asset with controlled supply and unlimited demand. Unlike NFTs (remember those?), these bags have actual utility—you can carry stuff in them. Revolutionary concept, I know.
Daniel Langer, a luxury strategy professor, admits he wishes he’d bought Hermès bags instead of Hermès stock. That’s like a tech analyst saying they should have bought iPhones instead of Apple shares. The irony is delicious.
Now, before you start eyeing that $36,000 Mini Kelly II as your next investment vehicle, remember that this strategy requires having $36,000 lying around for a handbag. It’s not exactly accessible to the average investor who gets excited about commission-free trades.
But here’s the real takeaway: sometimes the best investments are hiding in plain sight, carried on the arms of people who understand that true luxury isn’t just about showing off—it’s about assets that hold their value better than most stocks. Who knew that the secret to beating the market was literally carrying it around town?