TIVP035: FERRARI (RACE): HIGH-SPEED COMPOUNDER

W/ SHAWN O’MALLEY & DANIEL MAHNCKE

TIVP035: FERRARI (RACE): HIGH-SPEED COMPOUNDER W/ SHAWN O’MALLEY & DANIEL MAHNCKE

31 August 2025

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 about Ferrari’s unique strategy to keep supply below demand, how Ferrari is more like Hérmes than Porsche, why Ferrari’s business stands out even among other luxury vehicle makers, how the company has leveraged its iconic IP to drive better and better financial results, and whether RACE is attractively valued today, plus so much more!

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IN THIS EPISODE, YOU’LL LEARN:

  • Why Ferrari obsesses over keeping supply below demand.
  • How Ferrari has created a long-term ownership culture amongst its clients, similar to the mindset among shareholders of Berkshire Hathaway.
  • Why Ferrari is more like Hérmes than Porsche.
  • Ferrari’s response to the hybrid and EV movements.
  • The creative ways Ferrari has leveraged its IP to sell cars at higher and higher prices.
  • What it actually takes to buy a Ferrari, and how Ferrari chooses its customers.
  • What makes Ferrari special amongst even other ultra-luxury vehicle makers.
  • How to think about modeling RACE’s intrinsic value.
  • Whether Shawn and Daniel add RACE to their Intrinsic Value Portfolio.

 

 

 

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.

 

[00:00:00] Daniel Mahncke: We are off to the races today, folks, both fans of Formula One and quality. Compounders should rejoice because we are covering none other than Ferrari, perhaps one of the most treasured brands in the world, and that status has translated into phenomenal financial results to an extent that is really unmatched by any other luxury vehicle.

[00:00:21] Daniel Mahncke: Brands you might think as modern for example, comes with similar status as Ferrari, but their financial results pale in comparison. Shortness helped me really appreciate offline that there may in fact be something truly special about Ferrari. Listeners can decide for themselves whether they agree by the end of this episode, but either way, I think we are in for a great story.

[00:00:44] Daniel Mahncke: Hollywood has made a number of movies about this company for a reason. Anyways, before I ramble too much, how about I throw it over to you, Shawn, since it is your pitch after all. But just one last thing before I do. So in case you’ve missed some of our recent updates, I want to just quickly mention that we are going to be opening applications to our Intrinsic Value community of investors again soon.

[00:01:06] Daniel Mahncke: So if you’re interested in potentially participating in a vetted group that discusses investment ideas weekly, you can just join the wait list for updates theinvestorspodcast.com/intrinsic-value-ommunity/. We’ll also put the link in the show notes so you cannot miss it. But now I think it’s time I throw it over to you. Shawn, tell us about Ferrari.

[00:01:26] Shawn O’Malley: Yeah, well, it’s funny you mentioned the Hollywood movies on Ferrari because this past Friday I saw the F1 movie with Brad Pitt and it was pretty good. Not bad, but you know, I, I had always heard that Ferrari was this. Very high quality company. And then I would look at the PE multiple and I think, okay, well I don’t really care how good it is because I’m not going to pay 50 times earnings for a car maker.

 

 

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