Luca di Montezemolo

You often hear investors talk about unlocking value by spinning something off and getting rid of the conglomerate discount and isolating centers of value.

That totally happened here.

Ferrari was not appreciated by investors when it was nestled inside of Fiat for the real gem that it was.

And as a publicly traded company on its own, reporting its own financials, people piled in.

This story, oh my God, again and again and again, those closest to Enzo himself, Ferrari, the company, tragedy.

A tech guy.

A former, I believe, physicist or at least physics undergrad who ended up going into semiconductors.

And if my memory serves, he holds the patent for the accelerometer.

Or at least one of the patents for the accelerometer in the original iPhone.

And in particular, on this luxury retail goods market, it's interesting.

They sort of bifurcate the strategy.

The first thing they do is they clean up all the old crappy merchandising.

And they kind of narrow it to this brand licensing in very specific categories with very specific partners.

So Luxottica for glasses, Montblanc for pens, Richard Mille for watches, and Puma for shoes.

So there's this like sort of cohesive, yeah, we're going to make stuff for the Tifosi, but like there's a luxury associated with our brand that, you know, we have to stay true to.

Then they go into a lifestyle category of their own of first party products.

David, what is this?

That's one pillar of it anyway.

But yeah, it's this acknowledgement of, hey, there's a lot of people that want to participate in the Ferrari brand who are very affluent and they don't want to go buy any of these things from our partners.

They want products from us that aren't cars.