Warren Buffett Disciple Guy Spier’s 10 High Conviction Stock Picks

6. Ferrari N.V. (NYSE:RACE)

Value of Aquamarine Capital Management’s 13F Position (6/30/2024): $24.5 million

Number of Hedge Fund Shareholders (3/31/2024): 26

Hedge fund ownership of Ferrari N.V. (NYSE:RACE) dipped by 21% during the first quarter to sputter to a 3-year low. Aquamarine Capital also trimmed its Ferrari stake by 25% during Q1 to 60,000 shares, the only position it made a move on during that quarter. It maintained that position throughout Q2.

The luxury sports car maker grew revenue by 16% to €1.7 billion ($1.85 billion) in the second quarter, while a strong 39% margin contributed to impressive profitability metrics of €670 million ($731 million) in EBITDA and €413 million ($451 million) in net profit. CEO Benedetto Vigna noted the positive reception for Ferrari N.V. (NYSE:RACE)’s new sports car models during the company’s Q2 earnings call, and added that the company’s order book has strong visibility into 2026.

Ensemble Capital Management pointed out the positive impact Ferrari N.V. (NYSE:RACE)’s pricing power has had on the stock in recent quarters, as noted in its Q1 2024 investor letter:

“Ferrari N.V. (NYSE:RACE): With the company’s utility vehicle, the Purosangue, sold out despite being priced much more aggressively than many investors expected, investor attention has been turning to the company’s long term ability to raise prices. With the business’s earnings power being regularly revised higher by investors who watched the company navigate COVID and inflation easily, the stock has been on a tear.

Ferrari has had a very successful run since we first bought shares in the company in 2017. It has been one of our most successful investments since, with shares rising over five times, and understandably so given how phenomenal this business is and how well it has been managed.

Initially spun out of Fiat (now Stellantis) in 2015, it was a rare jewel within the parent company, where its value was hidden among more standard and premium cars sold under brands such as Fiat, Alpha Romeo, Maserati, Chrysler, Jeep, and others. Under the leadership of the astute business manager Sergio Marchionne, who had run Fiat since 2004, Ferrari came to be recognized as the undervalued and unique asset that it was within its parent…” (Click here to read the full text)