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TIVP035: Ferrari (RACE): High-Speed Compounder w/ Shawn O’Malley & Daniel Mahncke
Episode 644
Shawn O’Malley and Daniel Mahncke break down Ferrari (ticker: RACE), a company whose stock is arguably just as impressive as its high-performance and ultra-luxury vehicles. By global automotive standards, Ferrari hardly has any sales volumes, selling about 14,000 cars a year, yet these vehicles come with such premium price tags that the company can reasonably command a $90 billion market valuation still.
IN THIS EPISODE, YOU’LL LEARN
00:00 – Intro 09:27 - Why Ferrari obsesses over keeping supply below demand. 11:45 - Why Ferrari is more like Hérmes than Porsche. 16:27 - Ferrari’s response to the hybrid and EV movements. 30:35 - What makes Ferrari special amongst even other ultra-luxury vehicle makers. 33:53 - What it actually takes to buy a Ferrari, and how Ferrari chooses its customers. 42:40 - How Ferrari has created a long-term ownership culture amongst its clients, similar to the mindset among shareholders of Berkshire Hathaway. 48:05 - How to think about modeling RACE’s intrinsic value. 57:45 - The creative ways Ferrari has leveraged its IP to sell cars at higher and higher prices. 01:04:28 - Whether Shawn and Daniel add RACE to their Intrinsic Value Portfolio.
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
- Sign Up for The Intrinsic Value Community.
- Quartr Edge’s breakdown of Ferrari.
- Business Breakdowns’ podcast on Ferrari.
- Related episode: TIP711: Netflix, Ferrari, & Managing Market Volatility w/ Arif Karim.
- Guy Spier on Ferrari.
- K500 Classic Car Index.
- Explore our previous Intrinsic Value breakdowns: Uber, Nike, Reddit, Nintendo, Airbnb, AutoZone,
Published on 1 day, 12 hours ago