Prediction: Ferrari Is a Better Buy Than Ford for the Next Decade
2026-09-26 09:08
•Neil Patel •The Motley Fool
•• ••••• Axe Cap view
Why Ferrari Outshines Ford as a Long-Term Play
Ferrari’s brand strength and earnings growth position it better than Ford for the coming decade.
Ferrari’s stock has surged 742% over the last 10 years, driven by a nearly fourfold rise in net income. Their control over supply and unwavering brand prestige create a pricing power many mass-market automakers can only dream of. Ford, on the other hand, saw its net income fall by a third and faces ongoing pressure from competitors and electric vehicle startups. The lack of a strong moat means Ford’s 84% total return over ten years is unlikely to impress in the next cycle. South African investors should keep an eye on the USD/ZAR here; a stronger rand could offer better local buying power into premium global luxury brands and resources indirectly tied to affluent consumer trends. Still, Ferrari's exclusivity limits broad market exposure and adds volatility. this is just our opinion and not financial advice
For South African investors, consider a position in USD and a tracker fund with global luxury exposure over South African industrial plays tied to mass autos like Barloworld or Motus, which face tougher competition. Trim or avoid Ford shares given weak fundamentals.
- USD/ZAR
- Naspers
- Volatile rand weakening USD exposure returns
- Luxury car demand impacted by global economic slowdown
6/10
The article argues that Ferrari is a superior long-term investment compared to Ford over the next decade. While Ford's stock gained 84% total return over 10 years, Ferrari's surged 742%. The author attributes this to Ferrari's strong economic moat, pricing power, brand prestige, and superior earnings growth (377% net income increase vs. Ford's 33% decline), making it harder to replicate Ferrari's business model than Ford's.
Our take is based on reporting first published by The Motley Fool.