A Different Kind of Investment—A Familiar Kind of Flywheel
Ferrari isn’t my typical investment. I tend to focus on high-margin, software-enabled, platform businesses with extreme operational leverage and network effects. Companies like Microsoft, CrowdStrike, or Axon.
But every now and then, a business comes along that—despite having a very different surface—shares the same deep economic engine.
Ferrari is one of those.
What Triggered the Thesis
In mid-2025, I listened to an All-In Podcast episode where Chamath Palihapitiya, Jason Calacanis, and David Sacks were discussing the explosive rise of Formula 1—especially in the United States.
What stood out wasn’t just the F1 broadcast growth or Liberty Media’s savvy deal-making.
It was their insight into Ferrari’s unique position within that sport and beyond:
Ferrari is not just a car company. Ferrari is a status company.
That insight lit the match.
The Ferrari Flywheel: Scarcity × Loyalty × Status × Profit
Ferrari makes fewer than 15,000 cars a year—and many of its most desirable models are capped at just 300–400 units globally.
Some models are selling for $3M–$4M each, and that’s just to those lucky enough to be invited to purchase one.
This isn’t just scarcity for the sake of production.
It’s scarcity as strategy.
Let me unpack the flywheel:
- Scarcity of supply → keeps waitlists long
- Loyalty program → incentivizes years-long purchase history
- Exclusive access → creates prestige and fuels demand
- Pricing power → allows Ferrari to capture luxury margins
- Aftermarket strength → reinforces brand value and perception
- Customer base self-selects → ultra-wealthy, brand-loyal buyers
- Reinforced scarcity → because not everyone gets in
And that’s the key: the most valuable product Ferrari sells may not be a car.
It’s belonging—to a global club that very few will ever join.
F1 and the Dreamscape of the Modern Billionaire
The podcast also surfaced another emergent trend:
F1 is becoming the playground of the modern software billionaire class.
- The U.S. now hosts three F1 races per year
- Viewership is skyrocketing—especially among younger, wealthier Americans
- F1 is taking over the cultural oxygen of elite sport, much like golf or yachting once did
And who’s at the center of F1’s mythology?
Ferrari.
Owning a Ferrari—particularly a limited-edition one—is not just about driving.
It’s a symbol of cultural capital in a new American aristocracy formed by tech success.
The Loyalty Program is the Moat
At the heart of Ferrari’s business model is its Loyalty Ladder.
To buy a top-tier model, you often must:
- Own at least 2–3 Ferraris already
- Attend Ferrari events
- Be on their list for years
- Have a track record of service history and genuine brand engagement
This isn’t just customer retention—it’s customer filtration.
That makes the program itself a moat.
Ferrari’s pricing power isn’t enforced by competition, but by exclusion.
From Fan to Owner
This investment is also personal.
Ferrari has been my favourite Formula 1 team for over 25 years.
Back in 2008, my wife and I even made a pilgrimage to Maranello, Italy—home of Ferrari’s factory and museum.
So when I saw the economic thesis line up with the emotional one, it made sense to act.
I began building my position in June 2025—patiently, deliberately.
A Luxury Brand With Tech-Like Margins
Ferrari isn’t a tech company. But its financial profile feels like one:
- Gross margins over 50%
- Operating margins higher than Apple
- Negative working capital
- Backlog of demand for years into the future
- Near-zero marketing spend—the brand markets itself
And unlike software, Ferrari doesn’t get disrupted.
It sells emotion, identity, and status—not features.
Final Thoughts: Owning the Unownable
In a world where luxury is becoming more accessible, Ferrari is doing the opposite.
It’s keeping its doors firmly shut.
And that’s exactly what makes it investable.
While most companies are trying to scale endlessly, Ferrari is scaling selectivity.
It is one of the few businesses where constraining supply creates exponential value.
For those of us who look for flywheels, pricing power, and brand invincibility,
Ferrari turns out to be a masterclass—in red.
