Yachts, Wealth, And Value: The Sanlorenzo Opportunity

2025-04-29 04:30:39 ET

Summary

• Wealth among high-net-worth individuals is growing, driving demand for luxury yachts, with the market expanding at a healthy single-digit rate.
• Sanlorenzo is a premium yacht builder trading at attractive valuation multiples, offering a 10% earnings yield and strong capital allocation.
• Even with conservative assumptions, Sanlorenzo could provide a 4X return over 10 years, equating to a 14% CAGR, with potential for higher returns.
• Sanlorenzo represents a classic Buffett-type investment: a wonderful company at a fair price, operating in a steadily growing market with strong management and brand recognition.

Introduction: Investing Where the Money Grows

When it comes to investing, following the money has always been a good idea. Today, wealth among high-net-worth individuals (HNWI) — people with more than $1 million in investable assets — is growing steadily at a high single-digit percentage rate, according to UBS Wealth Reports and Capgemini's World Wealth Report ( World Wealth Report 2024 )....

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