Warren Buffett's Faith In Ferrari Pays Off As Italian Automaker Speeds Toward $100B Valuation
Portfolio Pulse from Benzinga Neuro
Warren Buffett's investment in Ferrari (NYSE:RACE) is proving fruitful as the company's market value nears $100 billion, driven by a 34% surge in 2023 net profit and a full order book until 2025. Despite Buffett's usual aversion to the auto industry, Ferrari's exceptional performance and strategic moves, including hiring F1 legend Lewis Hamilton for the 2024 season, have significantly contributed to its success.
February 02, 2024 | 6:15 am
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Ferrari's market value is approaching $100 billion, driven by a significant 34% increase in net profit for 2023 and a strong sales forecast extending orders nearly full until 2025.
The significant increase in Ferrari's net profit and the full order book until 2025 indicate strong financial health and demand for its luxury cars, likely leading to a positive short-term impact on its stock price. The strategic hiring of Lewis Hamilton also enhances the brand's visibility and appeal, potentially attracting more investors and customers.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100