Business Strategy and Outlook
| Richard Hilgert |We find the long-term stability of Ferrari's revenue, addressable market growth, expansive profit margin, and solid returns on invested capital throughout economic cycles to be compelling reasons to invest at the right price. Because of its exclusive clientele of high-net-worth individuals, we believe the company will show resiliency during periods of economic uncertainty; such was the case with the coronavirus pandemic in 2020. While we are not entirely averse to paying up for stocks that possess a wide economic moat and stable economic profits through business cycles, we think Ferrari shares will regularly trade at rich, luxury goods valuation multiples.