It means Ferrari can operate with a substantially smaller footprint than its rivals. Also, thanks to the company's lucrative sales margins, it has no need to ramp up production to meet demand. Those sales margins have led to consistent growth for the share price: So, with that in mind... Let's circle back to the eyebrow-raising statistic that I referenced at the top of this article. With Ferraris having such a huge price tag and such limited availability, you have to wonder... Who is actually buying them? Well, according to Ferrari CEO Benedetto Vigna, nearly a third of new buyers are under the age of 40. That blew me away. Despite the waiting lists for some Ferrari models stretching to three years or more, Vigna told CNBC that the company has no plans to supercharge production, saying, "We are a brand that is not looking for volume." YOUR ACTION PLAN The big takeaway? If Ferrari (NYSE: RACE) is now attracting the young and rich crowd, it could be set up for a lifetime relationship with one of the most important demographics in the entire world. As a result, inside The War Room, I'll now be looking closer at the RACE chart for trading opportunities. Click here to trade along with me. |
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