Are Birkins Better Investments Than the Stock Market? The Truth About Luxury Investing with Dana Auslander
Episode of Money Rehab with Nicole Lapin · May 4, 2026 · 48 min
Nicole Lapin talks with Luxus founder Dana Auslander about whether Hermès Birkin bags outperform stocks, how her Birkin fund works, and other luxury alternative investments.
Summary
Nicole Lapin interviewed Dana Auslander, a former Blackstone hedge fund executive who founded Luxus, an alternative investment firm running what it describes as the first dedicated Hermès Birkin fund. Auslander said her fund earns roughly 35 to 40 percent gross and about 25 to 27 percent net per bag, estimating an individual consumer might see 18 to 20 percent over a bag's lifetime after resale fees. She argued the fund's thesis rests on the spread between primary and secondary market prices rather than long-term appreciation, and that only the Birkin and Kelly "quota bags" are investment grade, describing Hermès as a Veblen good alongside Patek Philippe and Ferrari while arguing Chanel is not.
Auslander described Hermès's manufactured scarcity, the rise of the secondary resale market since The RealReal's founding, and her attendance at the Paris auction where Jane Birkin's original bag sold for $10.8 million. She attributed resilient luxury demand to a K-shaped economy, warned that counterfeits are becoming a serious problem, and noted an expected European digital product passport requirement. She explained Luxus's origins, its fund structure for accredited investors with a $100,000 minimum, sourcing through private dealer networks, and plans to expand to 800 bags and launch a $10 million third fund.
The pair also discussed Hermès stock, which Auslander said was down about 20 percent in the year and trading at a high multiple, and the pressure on LVMH and Kering after their Middle East expansion plans were disrupted by war. Auslander rated other alternative assets: watches a seven, post-war contemporary art a nine, wine a two or three, and vintage jewelry a nine. She closed by urging women to pursue financial literacy.
Chapters
- 0:00
Introduction
Lapin previews the viral claim that Birkins beat the stock market and introduces Dana Auslander.
- 1:30
Birkin returns versus the S&P 500
Auslander breaks down gross and net returns per bag and explains the fund's spread-based strategy.
- 4:02
Quota bags and manufactured scarcity
Auslander explains Birkin pricing, Hermès purchase requirements, and how the secondary market fueled demand.
- 8:50
Jane Birkin's bag at auction
Auslander recounts witnessing Jane Birkin's original Birkin sell for $10.8 million in Paris.
- 10:23
Chanel and Veblen goods
Auslander argues only Birkins and Kellys are investment grade, explaining the Veblen good concept.
- 12:45
Buying as a consumer, not a flipper
Auslander discusses her personal collection and Hermès sales practices.
- 15:25
Live selling, COVID and the K-shaped economy
The pair discuss live shopping, pandemic-era price spikes, and wealth concentration driving luxury demand.
- 18:10
The counterfeit problem
Auslander describes increasingly convincing fakes, authentication methods, and upcoming digital passports.
- 23:21
Building the Luxus Birkin fund
Auslander describes her career, founding Luxus, and how the fund sources, stores, and sells bags.
- 31:20
Hermès stock and active fund management
Auslander explains why the fund is not a proxy for Hermès equity and how exits are managed.
- 35:10
Luxury equities and the Middle East
Auslander contrasts struggling aspirational brands with ultra-high-end names and war's impact on Gulf expansion.
- 39:35
Rating other luxury assets
Auslander rates watches, art, wine, and jewelry as investments.
- 42:58
Financial literacy tip
Auslander urges women to seek financial literacy and own their financial story.
Key points
What was said, by whom, with the exact words. Timestamps jump to the moment.
- Nicole Lapin
Lapin recounts selling a Birkin on The RealReal and finding that fees largely erased her return.
“I sold a Birkin on The RealReal. And it did have somewhat of a return, but the fee is where you actually break even or lose some money from retail”
- Dana Auslander
Auslander says her fund earns about 35 to 40 percent gross per bag and roughly 25 to 27 percent net after fees.
“It's 35% to 40% for our fund at least per bag gross. And then net, it's around 25%, 27% because of all the fees”
- Dana Auslander
Auslander explains that the fund relies on the spread between primary and secondary market prices rather than Birkin appreciation.
“We set up the fund not to really rely on the appreciation of a Birkin but on the spread between the primary market and the secondary market”
- Dana Auslander
Auslander says buyers typically need an annual spending history of $25,000 to $50,000 on other Hermès goods to be eligible for a Birkin or Kelly.
“You have to have a spent history of about 25 to 50,000 a year on other Hermes goods to be able to even be eligible”
- Dana AuslanderPrediction · due May 2028
Auslander predicts the fund's second, 30-month vehicle launched in November 2025 will return 2x multiple on invested capital.
“that is 30 months and we'll definitely be able to return 2x of MOIC”
- Dana Auslander
Auslander holds that only the Birkin and Kelly qualify as investment-grade handbags.
“In our opinion, the only investment grade handbag is the Birkin or the Kelly”
- Dana Auslander
Auslander argues Hermès, Patek Philippe and Ferrari are the only luxury Veblen goods, and Chanel is not one.
“Hermes, Patek, and Ferrari are kind of the only three luxury goods that fall in that category. Chanel doesn't”
- Dana Auslander
Auslander advises individuals who buy a Birkin to treat it as a consumer purchase rather than something to flip.
“So I would just say if you buy one, don't have a view to flip it”
- Dana Auslander
Auslander attributes resilient luxury demand to a K-shaped economy in which the very wealthy keep spending on cars, watches, Birkins and experiences.
“you've got the very, very wealthy just getting wealthier and wealthier. And what they're spending their money on is mostly cars and watches and Birkins and experiences”
- Dana Auslander
Auslander warns that counterfeit manufacturing in Asia has become highly convincing and buyers must be careful.
“But the manufacturing in China and in Asia has become really, really good. And you have to be very, very careful with what you buy”
- Dana AuslanderPrediction · due Dec 2029
Auslander expects that by 2028 or 2029 all consumer goods coming out of Europe will require a digital passport proving authenticity.
“I think by 28 or 29, every single consumer good that's coming out of Europe will need a digital passport too”
- Dana Auslander
Auslander advises sellers not to pay more than about 15 percent commission to resale platforms for a Birkin or Kelly.
“I would say don't settle for anything under 15% for Birkin or Kelly. In other words, don't pay more than 15% commission on it”
- Dana AuslanderCame true
Auslander says Luxus plans to launch a third, $10 million fund in the summer.
“And we're launching fund three in the summer for $10 million”
Linked moment · 31:56Skip to 31:56 using a listen link in the info box.
Dana AuslanderAuslander says Hermès stock is down about 20 percent this year and considers it a good time to buy the equity.
“But it's down 20% this year. So if you do want to invest in or miss the company, this is a good time to buy”
- Dana AuslanderPrediction · due Dec 2026
Auslander predicts the funds will grow from 80 bags to 800 bags by the end of the year.
“We have 80 bags now between fund one and fund two. We'll have 800 by the end of the year”
- Dana Auslander
Auslander argues that luxury conglomerates' pandemic-era push to democratize entry points backfired.
“And that's backfired. You can't be all things to all people”
- Dana Auslander
Auslander does not expect Hermès's manufactured scarcity to end within the next five to ten years.
“I don't think it'll go away in the next, I would say, five to 10 years”
- Dana Auslander
Auslander rates wine only a two or three as an investment because younger generations are drinking less.
“Wine's like a two or three because Gen Z, Gen Alpha, and the younger folks aren't drinking”
- Dana Auslander
Auslander says vintage jewelry from the 1930s and 1940s by houses like Cartier, Bulgari and Van Cleef will always perform well.
“I think vintage jewelry from the 30s and the 40s, Cartier, Bulgari, Van Cleef, will always do really, really well”
- Dana Auslander
Auslander urges women to seek out financial literacy programs and take control of their finances.
“So seek out all financial literacy programs for women and become the master of your own story”
People
In the conversation
- Nicole LapinFinancial journalist, author and host of Money Rehab
- Dana AuslanderFormer Blackstone executive and founder of the luxury alternative asset manager Luxus
Discussed
- Jane BirkinEnglish-French actress and singer who was the muse for the Hermès Birkin bag
- Carolyn Bessette-KennedyAmerican fashion figure whose Birkin inspired Auslander's purchase
- Kevin O'LearyCanadian investor and TV personality who previously appeared on the show
- Matthieu BlazyCreative director of Chanel
- Anita KoLos Angeles jewelry designer Auslander collected
Topics
From the publisher
You’ve probably seen the headlines about luxury investments outperforming the stock market… but is that actually true? And more importantly, is this a game only for millionaires, or is there a way for the rest of us to get in on it too? Today, Nicole is joined by Dana Auslander, former Blackstone executive and founder of Luxus, a luxury alternative asset manager with the first dedicated Hermès Birkin fund. In this conversation, Dana unpacks the viral headlines, why her investment thesis puts Hermès bags ahead of other luxury brands like Chanel and Louis Vuitton, and how to invest in a Birkin without buying a Birkin. Then, Nicole and Dana zoom out and explain what the luxury investment trends mean for retail investors, how the macroeconomy impacts luxury investments, and what the counterfeiting problem could mean for the whole market. Then, Dana goes beyond bags and rates watches, art, wine, and jewelry as alternative investments. Check out Nicole's financial literacy course The Money School Find a Financial Advisor or Financial Coach from Nicole's company Private Wealth Collective Watch video clips from the pod on Money Rehab's Instagram and Nicole Lapin's Instagram Follow Luxus and learn more about the Birkin Fund Here's what Nicole covers with Dana: 00:00 Are You Ready for Some Money Rehab? 01:27 Are Birkins Actually Better Than the S&P 500? 02:00 What Is a Veblen Good — and Why It Matters 04:06 How Much Is a Birkin, Really? 04:29 The Secret to Getting One From Hermès 05:21 Manufactured Scarcity: How Hermès Controls Demand 06:12 The Rise of the Secondary Market 07:35 Gross vs. Net Returns: What the Charts Don't Show You 09:24 Jane Birkin's Bag Sold for $10.8 Million — Dana Was There 13:00 Is Chanel Actually Investment-Grade? 14:00 Birkin vs. Stock Market: Where Should You Put Your Money? 16:38 How the Luxus Fund Works 21:00 How to Invest Without Buying a Birkin 23:36 Sourcing Bags Through Private Dealer Networks 27:15 Storing, Authenticating, and Selling the Bags…
Summary, chapters and key points were generated from the episode transcript on September 27, 2026. Quotes are checked word for word against the transcript.