Bratislava, June 13, 2017 – We have a question for you. Are men or women better investors? If you’ve guessed men, you are wrong. A number of reputable studies¹ confirmed that women are more successful in this area. And investing – this time in luxury – has also become the topic of the Erste Private Banking Ladies’ Business Club.

The whole evening, headed by Michaela Kaňová, Director of Erste Private Banking, had an exclusive touch. The forum was held in the Nedbalka Gallery in Bratislava, which is known for its unique collection of Slovak modern art. The unique premises of the historic building, together with the opportunity to enjoy the works of art, as well as the exhibition of luxury watches and the taste of Angel water – all complemented the atmosphere of an unforgettable evening.

Investing is tempting for people. It is associated with the greatest successes, as well as spectacular failures. However, the fact is that although as a topic it resonates throughout the world, there is still (also due to the economic development) a number of questions to be answered. That is why Erste Private Banking decided to discuss during its June meeting of the Ladies’ Business Club whether investment in luxury makes good sense.

These are three most important aspects that were debated at the Ladies' Business Club Investing in luxury:

Invest in gold. Diamonds are a good choice, if you understand them

"Investing will pay off. It is not just a matter of increasing the value of your assets, but also the need for diversification. This way you will be ready for the future, no matter what it brings,” says Jana Holíková, a member of the Erste Private Banking team. As she noted, in case of luxury, it depends on the client's preferences, where she decides to place her trust in. Whether it is art, diamonds or gold: “However, investing in diamonds, I would rather recommend it to those who have understanding of rare minerals. From this aspect the gold is much simpler."

Undisputed advantage of gold? It's easy to sell

Gold is considered a value keeper in the long run, and therefore people are constantly investing in it. "It is unique in the world and at the same time it has the same properties everywhere. Wherever you bring it, you can instantly receive a valuation,” explains Michal Orlovský, head of the Treasury Department at Slovenská sporiteľňa.

Its undoubted advantage is also the ease of selling. “If you get into a situation where you need to quickly liquidate your investment, all you need is to make a single telephone call. Through our recorded telephone line you are able to sell the gold immediately and the funds will be on your account on the same day,” explains Jana Holíková.

By the way, did you know that gold is also a great gift idea? If you do not want to keep it at home, you can place it in the bank’s strongroom. “Of course, the client can always see the current value on the statement from his/her portfolio,” explains Jana Holíková.

Fashion also sets trends in investing

Profitable investment is already associated also with fashion brands. Many of the brands have found gaps in the market. Whether it is their entry to Asia or the online world or the stock market - they have succeeded in raising their sales and value. "LVMH (Louis Vuitton Moët Hennessy), Dior or Chanel are stable brands, with rising valuations. Investment in these brands will pay off,” says Zdeno Gáfrik, editor of the Cocktail and Woman sections of the Pravda daily and Mia magazine editor. He adds that it is difficult to predict how fashion houses will perform in the future. The situation must be constantly monitored, but with the most influential giants there is likelihood of a positive development.

Investing in fashion houses has already become profitable also for Slovenská sporiteľňa clients. “Last year, we launched the sale of LVMH certificates. When we introduced the offer, a share was worth EUR 160, today it is valued at EUR 220. According to the most analysts’ predictions the price is set to continue to grow,” says Jana Holíková. Zdeno Gáfrik reaffirmed her words by referring to one of the top fashion acquisitions on the market, since LVMH took over the control of Christian Dior.

A different situation arises when you invest in products of fashion houses. “In this case, you must always remember that it is a consumable item that will lose from its value over time. Exceptions are limited and specialized editions,” says Zdeno Gáfrik.

The sports fashion segment is also becoming very attractive, especially those brands that associate their name with famous designers or celebrities. As an example, there is Puma joining forces with Rihanna (Fenty collection) or Stella McCartney with Adidas.

By the way, do you know why women are better investors than men? One of the reasons is because they have different approach to their financial decisions. They are more disciplined in complying with the rules and are unlikely to take unnecessary risk. Therefore they weigh up any change more thoroughly.

If you are already investing or just considering it – do not forget one thing. Have a partner. Someone bets on a woman, someone on a man. “Above all, prefer the experts,” says Michal Orlovský from Slovenská sporiteľňa.

Successful business stories at the Ladies' Business Club Investing in luxury:

The second Ladies' Business Club of Erste Private Banking was also an opportunity to spend time with successful and exceptional people. Here they are:

Helena Krasňanská is the owner of Sheron jewellery, which has been operating on the market since 1991. The company became the exclusive representative of the Rolex brand in Slovakia, focusing primarily on this brand. “The reason is obvious. Rolex is a stable and strong brand that keeps growing. During the past year 780,000 watches were produced,” explained Helena Krasňanská, saying that men and women look at completely different things when choosing their watch: “Men place emphasis on the technical aspect, women are interested more in visual impression and the jewels adorning the watch face.”

In addition, Sheron has also prepared a private tour of its product portfolio. Ladies who attended the forum had the opportunity to inspect the watches close up and find out why Rolex rules the world of watches and diamonds belong to the world of jewellery.

Peter Paško is a man who 25 years ago co-founded the IT company Eset, which in the meantime became one of the largest antivirus companies in the world. But he always had a soft spot for the art, which he is involved in himself. “I fell in love at first sight with the building in Nedbalova Street, which they wanted to tear down. I bought it and together with Artur Bartoška we decided to open a gallery, presenting Slovak art, which would be the first of its kind here. That is how the Nedbalka Gallery was born. Every investment should make a return at some point in time. Whether it will be three, six or ten years. I view the gallery as an investment, which will be here maybe even for a hundred years, since it is presenting works of Slovak artists or artists living in Slovakia. For me, it was more of a money transformation than an investment.”

The ladies who attended the Erste Private Banking Ladies' Business Club could see for themselves what is so exceptional about the Slovak art and why also Peter Paško placed his bet on it.

¹ These include, for example, a study by Rothstein Kass consulting firm conducted in 2013, or research by Brad Barber of the University of California in Davis and Terrance Odean of the University of California in Berkeley.

What is the Erste Private Banking Ladies' Business Club?

A forum for successful and opinion-making Slovak women. Its aim is to bring interesting topics to the table and to promote a discussion about business trends or positive and negative experiences in business and personal life. Although Erste Private Banking, headed by Michaela Kaňová, has been organizing various events for women for the past six years, the Ladies Business Club has become a regular platform for women entrepreneurs to get to know each other and to share inspiration. Regular feature of the events are exceptional experiences in the form of tastings or various presentations.

What is Erste Private Banking?

According to the prestigious magazine The Banker, Erste Group belongs to financial houses that offer the finest private banking in Central and Eastern Europe. Erste Private Banking in Slovakia manages assets worth EUR 800 million and provides services to more than 1,500 clients.