TIVP035: Ferrari (RACE): High-Speed Compounder w/ Shawn O’Malley & Daniel Mahncke
The Intrinsic Value Podcast - The Investor’s Podcast Network
The Investor's Podcast Network
4.6 • 592 Ratings
🗓️ 31 August 2025
⏱️ 76 minutes
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| 0:00.0 | Look, this thing is expensively priced if you just look at it in PE terms. |
| 0:05.4 | But when you have the kind of brand and pricing power that Ferrari has, you only need very little sales volume growth on top of price hikes and unveiling ever more expensive vehicles to continue growing revenues by double digit percentages. |
| 0:20.0 | The access returns on capital and the |
| 0:22.5 | incremental returns on their investments are as good as it gets. And so when you add in some |
| 0:28.3 | operating leverage where sales and R&D costs, decline as a percentage of revenue as a business expands, |
| 0:34.3 | plus some buybacks shrinking the share count, that's how you compound earnings per share at nearly 19% a year for a decade. |
| 0:41.1 | And really, I think they can continue compounding for years to come. |
| 0:44.5 | If there's just any chance you can get this company doing a sell-off, |
| 0:49.1 | where the P.E. multiple is modestly more reasonable. |
| 0:52.7 | Then I really do see this as a great chance to own as high |
| 0:57.2 | quality of any company out there, even in the world of high-end luxury. |
| 1:01.5 | This is just a phenomenal business. |
| 1:07.9 | You're listening to the Intrinsic Value podcast by the Investors Podcast Network. Since 2014, |
| 1:14.1 | with over 180 million downloads, we've learned directly from the world's best investors. |
| 1:19.7 | Now, we're applying those lessons to analyze businesses and investment opportunities every week, |
| 1:25.8 | helping you uncover intrinsic value. |
| 1:28.6 | And now, here are your hosts, Sean O'Malley and Daniel Monker. |
| 1:38.2 | We are off to the races today, folks. |
| 1:43.1 | Both fans of Formula One and Quality Comp compounders should rejoice because we are covering none other than Ferrari. |
| 1:50.2 | 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 brands. |
| 2:01.6 | You might think Asin Martin, for example, comes with similar status as Ferrari, but their financial |
| 2:07.4 | results pale in comparison. |
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