TIP836: EXOR NV (EXO): THE MASSIVE DISCOUNT CONTINUES TO WIDEN

W/ KYLE GRIEVE & SHAWN O’MALLEY

TIP836: EXOR NV (EXO): THE MASSIVE DISCOUNT CONTINUES TO WIDEN W/ KYLE GRIEVE & SHAWN O’MALLEY

05 August 2026

In today’s episode, Kyle Grieve and Shawn O’Malley analyze Exor, the Dutch holding company controlled by Italy’s Agnelli family and best known for its long-standing stake in Ferrari. They walk through Exor’s ownership of Ferrari, and what they like about Lingotto, Exor’s investing management company. Along the way, they dig into what could cause the current valuation gap to close or widen.

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IN THIS EPISODE, YOU’LL LEARN:

  • Revisiting the Exor and Ferrari thesis
  • How Exor’s stock reacted since the original purchase
  • Why Ferrari’s stock has fallen despite strong operating results
  • The market’s reaction to Ferrari’s new Luce model
  • How Ferrari’s other new releases are doing
  • Ferrari’s capital allocation, working capital, and margin trends
  • How Ferrari’s racing program supports its brand and marketing
  • Risks facing Ferrari from changing driving habits and tariffs
  • Expanding on Lingotto, Exor’s growing asset management business
  • Evaluating Lingotto’s performance, fees, and top holdings
  • And so much more!

Disclosure: This episode and the resources on this page are for informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. For full disclosures, see link.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:03] Shawn O’Malley: Hey folks, welcome back to The Investor’s Podcast. On today’s episode number 836, we are revisiting one of our previously pitched investment ideas, buying shares in Ferrari indirectly through Exor, which is an Italian holding company that has a very large stake in Ferrari. Yet its own stock trades at a significant discount to the market value of its investments, including that position in Ferrari. So one way to think about this is that thanks to the wide discount to net asset value, you can effectively acquire exposure to Ferrari’s business at a substantial discount.

[00:00:39] Shawn O’Malley: We’re talking about more than 50 percent by simply buying shares in Exor, which is this Italian listed holding company. And for starters, you probably have to believe that Ferrari is a compelling business to own, which we’ll get into while also believing that with prudent capital allocation decisions going forward, Exor can convince the market to at least partially narrow its very wide discount to NAV. That’s sort of the setup that you would need to believe for this investment to be attractive.

[00:01:09] Shawn O’Malley: And if all that happens, where Exor’s stock goes from trading at, say, an implied discount of 60 percent to its net asset value to maybe 30 percent, driven by buybacks that force the gap to close or maybe just improving market sentiment. That would be a huge tailwind. And that would actually just be a double alone from the gap narrowing. In addition to any further compounding of intrinsic value that you get by Ferrari’s business continuing just to keep chugging along. So that is the setup.

[00:01:38] Kyle Grieve: And the biggest problem with this thesis has kind of always been based around timing. You know, the logic makes a lot of sense, but the reality is that we have no catalysts in mind that would help meaningfully close the gap between X’s own market cap and the underlying value of the assets on its balance sheet. It also hasn’t helped that while Ferrari’s business remains completely intact, its shares have fallen simultaneously with Exor’s, and there’s no guarantee that Xers stock won’t keep treading water, even if Ferrari takes off again. Because investing in Exor’s certainly complicates your exposure to Ferrari versus buying the Ferrari shares straight up.

[00:02:10] Shawn O’Malley: And that new Ferrari, the Luce that has definitely not helped things either.

[00:02:15] Kyle Grieve: No, no doubt about that. So should we do it?

[00:02:18] Shawn O’Malley: Let’s do it.

[00:02:22] Intro: Since 2014, with more than 200 million downloads, we have interviewed the world’s best investors, studied deeply the principles of value investing, and uncovered many compelling investment opportunities. We focus on understanding businesses and intrinsic value, investing accordingly, and sharing everything we learn with you. This show is not investment advice. It’s intended for informational and entertainment purposes only. All opinions expressed by hosts and guests are solely their own, and they may have investments in the securities discussed. Now, for your hosts, Shawn O’Malley and Kyle Grieve.

[00:03:08] Shawn O’Malley: If you’ve been listening to the show for a while, you know that there are two companies that we really like, and you can think of it as sort of a double header. We covered Ferrari as a standalone stock, and the conclusion on Ferrari was pretty simple. We love the business, but we didn’t necessarily love the valuation, at least not at that time. It was a little too rich for our value investing blood.

[00:03:30] Shawn O’Malley: But luckily for us, we have a wide audience of very intelligent listeners who like to point things out to us, and one of them guided us towards a name we’d never heard of before. And that was Exor. And Exor just so happened to be Ferrari’s largest shareholder. And as a holding company, it traded at a massive discount to the net asset value of its holdings, as I mentioned a moment ago.

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