TECH - Warren Buffett's Faith On Ferrari Seems To Pay Off As Italian Automaker Races Towards $100B Valuation | Benzinga
Warren Buffett‘s faith in Ferrari (NYSE:RACE) seems to be paying off, with the luxury carmaker’s market value approaching $100 billion.
What Happened: Despite his skepticism towards the auto industry, Buffett expressed confidence in Ferrari at Berkshire Hathaway’s shareholder meeting last May, Fortune reported. This faith in the Italian luxury sports car manufacturer seems to be justified, as Ferrari’s 2023 net profit has surged by 34% from the previous year. The company has also raised its 2024 forecast and reported that its order books are nearly full until 2025,
These developments have propelled Ferrari’s shares to record highs, bringing the company’s market cap close to the $100 billion mark. This is a significant achievement, considering Buffett’s general aversion to automakers due to the industry’s fierce competition and lack of permanence.
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