Friday, December 21, 2007

Gisele Bundchen Stock Index Update

Gisele Bündchen, who was named by Forbes Magazine as the top earning supermodel, earned $33 million in 2006. Guinness World Records said that she is now the richest supermodel in the world. According to several news sources, she reportedly refused US dollars for some of her contracts, and requested Euros instead.

Back in July of this year, I developed the Gisele Bundchen Stock Index, which contained the stocks of companies that Gisele is connected with. At the time, her index was outperforming the stock market. I have updated the index for the year using today's prices for year end, and noticed that Gisele has continued to outperform the Dow Jones Industrial Average significantly. Gisele was up 29% for the year versus 6.5% for the Dow.

What is interesting to note is that when Gisele terminated her agreement back in May with Victoria's Secret, which is owned by Limited Brands Inc. (LTD), Limited was selling for $26.80 per share. The stock is now down to $18.36 per share, a 31.5% drop.

I have kept LTD in the index to be consistent for the year, but it is probably time for a change. Gisele recently signed a contract with Procter & Gamble Co. (PG), to promote their Pantene hair products. In addition, she is also working with Disney (DIS), dressed as Wendy from Peter Pan.

Components of the Gisele Bündchen Stock Index:

LVMUY.PK LVMH Moët Hennessy Louis Vuitton S.A. owns several companies which Gisele is the spokesperson for, including Louis Vuitton (a luxury French fashion company), Givenchy ( French retailer of clothing, accessories, perfumes and cosmetics), Guerlain (the oldest perfume house in the world), and Céline.
AAPL Appeared on the 'Get a Mac' advertisements to promote the new line of Macintosh's.
LTD Victoria's Secret model, owned by Limited Brands. Note: On May 1st, 2007, Victoria's Secret announced that Bundchen had ended her contract with them.
RL Advertising campaign face for Ralph Lauren, owned by Polo Ralph Lauren Corp.
BULIF.PK Advertising campaign face for Bulgari, Italian jeweler and luxury goods retailer.
PPRUF.PK Celebrity endorsement - Balenciaga, a fashion house, owned by Gucci, owned by PPR SA.
VIV Celebrity endorsement - Vivo Participacoes S.A. largest mobile phone service provider in Brazil and in South America.
NWS Starred in the comedy, Taxi, in her movie debut, and The Devil Wears Prada, both produced by 20th Century Fox, a division of News Corp.
SNE Rumored to be starring in the upcoming Angels and Demons distributed by Sony.
VIA-B She won the the VH1/Vogue Model of the Year, VH1 owned by MTV Networks, which is owned by Viacom, Inc.
LGDDF.PK Lagardere Groupe SCA owns ELLE magazine, on which and in which Gisele's picture has appeared many times.

This is a price-weighted index, similar to the Dow Jones Industrial Average.
Dividends were excluded.

Author owns AAPL and DIS.

By Fred Fuld for


Mabs said...

No doubt to be named as the top earning supermodel. She got the looks. I lover her. Read Gisele Bundchen bio.

rosesryellow2 said...

Interesting analysis and chart. Would you mind listing which stocks you have in the index?


guru said...

I am super model Gisele Bundchen fan...
i love her pic. nice