From Fortune:

Warren Buffett, known for avoiding automakers, expressed confidence in Ferrari. The luxury sports car manufacturer reported a 34% increase in net profit for 2023 and raised its forecast for 2024. Berkshire Hathaway generally avoids automakers due to intense global competition but did make an exception for China’s BYD and GM shares in 2012.

Despite Elon Musk’s efforts, Warren Buffett and Berkshire Hathaway have remained reluctant to invest in automotive stocks. At the conglomerate’s shareholder meeting in May, Buffett and his deputy Charlie Munger explained their reasoning for avoiding the auto industry, which they described as “too tough.” They haven’t been persuaded by the success of companies like Tesla.

While Ferrari sells relatively few vehicles compared to larger automakers, its emphasis on quality over quantity and its status as a luxury brand have contributed to its success. Ferrari recently celebrated a 34% increase in net profit for 2023, pushing its market cap close to $100 billion. The company also recently received a boost from Formula 1 racing with the news that Lewis Hamilton would be joining the team for the 2025 F1 season.



Read more: Warren Buffett–praised Ferrari nears $100B market value