Luca di Montezemolo

There's some fun numbers just to keep putting this in perspective.

There are 10 times more Birkin and Kelly bags made each year over at Hermes than there are Ferraris.

And there are 70 times more Rolexes made each year than there are Ferraris.

Yeah.

It's wild.

The paradoxes continue.

People are dying for their SUVs, and yet they limit them to just 20% of total volume.

Wait, what is this SUV of which you speak?

Ford, here's another good one, makes 160 times the number of cars that Ferrari does, yet Ferrari has a higher market capitalization.

They're worth more than the Ford Motor Company.

Yes.

And Volkswagen and Honda and Stellantis and Mercedes-Benz.

This company is worth so much more than most giant manufacturers.

Ferrari makes all of their cars mostly by hand, inefficiently and one off in a single town, Maranello, Italy.

and they have the highest margins in the entire auto industry.

Of the very few cars that they do make, this is my favorite one, David, about 80% of them are earmarked specifically for people who already own a Ferrari.

So that means there's less than 3,000 new customers buying Ferraris in any given year.

It's actually completely insane when you think about it.

This funnel narrows pretty tight.

So how on earth did Ferrari manage to build this incredibly valuable business while selling their cars to almost nobody?