Exor is an Italian holding company that is owned by Italy’s richest family: the Agnelli’s. The family, through Giovanni Agnelli, still has over 85% of the voting rights. Almost 40% of Exor’s gross asset value consists of its stake in Ferrari. Other investments that might be familiar to you are football club Juventus, car manufacturer Stellantis and luxury company Christian Loboutin. 

The interesting part about investing in family-owned holding companies like Exor is that you can benefit from the capital allocation skills and long-term vision of the management just by sitting in your lazy chair. I remember one quote, and I can’t find which super investor stated it. In my mind, it was Buffett, but I could be wrong. Anyway, it went like, “If you’re considering buying a specific company, ask yourself the question: Would I still buy this stock if I invested 25% of my family’s money in it?” If the answer is still yes, then it’s more likely you found a high-quality company.” 

Investing in family-run businesses gives you this advantage. Of course, the Agnelli family aims to stay the richest family in Italy. Their interest is not to lose money but to compound it over time. In this analysis, we’ll explore how the company allocates capital, if it uses leverage, and what its future perspectives are. 

An analysis of a company active in sports cars, football, luxury and heavy trucks; you got to love it. Or, at least I do. 🙂

Disclaimer:
Nothing in this podcast can be considered financial advice. This is for educational purposes only. We may hold positions in the businesses discussed. Do your own research.

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