How I Research a Stock
If you want to be a successful stock picker, you need a consistent research process. This will not only help you find the right companies for your portfolio but make it easier and more efficient to sift through the thousands of publicly trading businesses on the market. And just as there is no one-size-fits-all investing strategy, there are no cookie-cutter approaches to investment research. What matters is whether the process works for you to be able to find quality companie
Ferrari, Not Your Average Car Maker
Ferrari is not an auto manufacturer. They are an ultra-luxury toy producer. Obviously they do design and produce cars, but that’s not the proper way to view the business. Ferrari has a market cap of $40 Billion. For reference, in 2018 Ferrari shipped 9,251 vehicles. Ford on the other hand, a $35 Billion business, delivered 2,497,318 vehicles. Ferrari is delivering less than .4% of Ford’s annual delivery numbers and still commands a higher valuation. So what makes Ferrari so v