I opened the first position in Ferrari today $RACE (+0,53 %) today. My plan is to build up the share in a total of three tranches until it reaches a target weighting of 3% of my overall portfolio.
Why now?
Luxury is not just luxury. While many brands in the sector are struggling with a reluctance to buy, Ferrari is in a league of its own. For me, this is an excellent opportunity to add one of the strongest moats in the world to my portfolio:
Ferrari doesn't sell cars, it sells dreams. The pricing power is almost absolute - price increases are accepted by the customer base without complaint.
The order book is full to bursting. This provides a level of planning security that is hard to find with any other vehicle manufacturer.
With EBITDA margins that are more reminiscent of software companies than car manufacturers, Ferrari is a cash flow machine.
Since quality stocks like Ferrari are rarely "cheap" in the traditional sense, I choose to enter in stages:
Tranche 1: Initial foot in the door (done ✅).
Tranche 2 & 3: Placed on setbacks of around 10 to 15%.
For me, Ferrari is not a short-term trade, but a long-term investment in a brand that will last for generations. 🐎
How do you see it? Is Ferrari a buy for you at the current price or are you waiting for a bigger dip?
