Ferrari, possibly the greatest car manufacturer of all time is a publicly listed company. They have operated publicly under the ticker RACE (best ticker) for eight years and have done well in that time. Up 500% in their existence, it doesn’t seem like Wall Street wants them to do anything different than what they’re doing. However, Ferrari has been expanding and changing.

Ferrari has become a luxury brand, similar to Louis Vuitton or Hermes, and this works well for them. People who don’t own Ferraris own their merchandise: sunglasses, jackets, and hats. People want to be a part of Ferrari, and Ferrari has weaponized well.

Ferrari sits atop a multi-layered pyramid. Directly below Ferrari lies Mercedes, Jaguar, BMW, Audi, and Lexas. Below them lies Kia, Toyota, Ford, etc. Directly beside Ferrari (if anyone is) lies Mclaren, (maybe Porsche), Rolls-Royce, and Bentley. Even if Rolls-Royce and Bentley can’t match Ferrari's performance, they still represent the same thing: greater than. If you drive a Ferrari to work, to the Country Club, or around town, you are cool. By buying a Ferrari you are cool. If you drive a starter BMW to work then you’re probably just a fresh-faced lawyer too scared to drive a Toyota. If you drive a Ferrari, then you are above everyone else. There are very few objects in this world that you can buy automatic respect with, the only car brands that come to mind are Lamborghini, Bugatti, and Ferrari. The only other things that come to mind that evoke similar awe would be mansions, jets, and general power. But even those don’t give off the same vibe. And neither do either of those other car brands. Who may have Ferrari beat occasionally on performance, but never on awe. Ferrari has built itself as racing and as status.

I have laid out their ability, but let’s talk about the stock itself. 55% of the company is owned by “other public shareholders,” meaning the public and smaller institutions. 24% is owned by the Dutch conglomerate Exor N.V. They have holdings in papers like The Economist, sports clubs like Juventus (boo), other car companies, and media. 10% is owned by Piero Ferrari the only surviving son of Enzo Ferrari. 6% is owned by Blackrock, and 5% is owned by T. Rowe Price. Ferrari made $5 billion in revenue and has upgraded guidance recently. You should listen to the most recent earnings call to determine for yourself whether you like the leadership, but I think the company is only heading up. However, they’re going to spin out for a minute. The price is going to fall for a month or two, and you should buy then, but what do I know? Trust Ferrari, trust the brand,