Tag Archives: Formula 1

Betting On A Red Horse

Ferrari 458 Speciale

Courtesy Ferrari N.A.

I’m not one to bet on horses. I never play the lotto (even with the record 10 figure jackpot currently in the headlines), and I have never even made it to a blackjack table in Vegas despite a few attempts. I didn’t even pay much attention to Williams Grand Prix, another stalwart of the Formula One (F1) circuit, when the company went public. But this time, it’s a little different. Ferrari is now a public company following a spin off from Fiat Chrysler (FCAU), and I have some shares of stock in the Prancing Horse.

The Legend

You might say I’m long on the legend of the Prancing Horse, which began with Enzo Ferrari (1898-1988) as a racing driver for Alfa Romeo in the early days of the automobile. Upon the birth of his son Alfredino (“Dino”), he retired from driving to concentrate on running Alfa’s F1 team, and then eventually setting up shop on his own.

In that bygone era of racing cars painted in national racing colors rather than adorned with sponsorship livery, road going Ferraris were sold to fund operations of the racing team. Ferrari has always been a company that sold cars to go racing, which is quite the opposite of most every manufacturer that has been involved with the sport before or since. It is also the one with the most wins and championships in F1, and the only one that has been part of the sport all through the post-WWII era, starting with the 1950 season.

Unsurprisingly in such a competitive business, the company’s fortunes ebbed and flowed over the years. Dino Ferrari, whom Enzo had likely been grooming to eventually takeover, tragically died of muscular dystrophy in 1956 at the age of 24. Then in the 1960s Ferrari almost sold the business to Ford but backed out. “The Deuce” (aka Henry Ford II) was incensed and commissioned the creation of the Ford GT40, which eventually ended Ferrari’s dominance of the famed 24 Hours of Le Mans endurance race, by winning four times straight beginning in 1966.

Fiat, under the leadership of Gianni Agnelli, bought a stake in the company in 1969 and later became the controlling shareholder. The company went on to some of its greatest successes after Enzo’s death in 1988, launching a slew of critically acclaimed and commercially successful models beginning in the 1990s and returning to its winning ways on the F1 circuit with a combined 14 driver and constructor titles between 1999 and 2008.

Green Pastures

Ferrari is a solid, if expensive investment. It is a trophy property after all. In the short term the share price is subject to fall due to the initial hype surrounding its IPO and the high Price/Earnings (P/E) ratio. However, over the long term I can’t think of many more solid investments in the “automotive” sector. Here’s why.
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2014 F1 Mid-Season Review

Sebastian Vettel leads Fernando Alonso at the 2014 German Grand Prix

Red Bull leads Ferrari at the German Grand Prix. Photo courtesy of Red Bull.

It’s been about four months since the 2014 Formula One (F1) season began. We are just past the half way point with 10 of the 19 races in the books. So far the action has been pretty good, especially toward the mid-field and fears of F1 dullness have proven to be unfounded. However, the cars are more expensive, complicated and uglier than ever and the racing hasn’t improved – not that there hasn’t been good racing, it just hasn’t improved.

On-Track Action

Mercedes has won all but one race. Nico Rosberg, with four wins and one non-finish (DNF), leads the championship by 14 points over teammate Lewis Hamilton, who has five wins and two DNFs. At least the team has so far let the two drivers battle it out. Daniel Ricciardo, who managed to win one race for the formerly dominant Red Bull team, lies third in the points.

At this time last year there were five different winners from four different teams. Granted after that Sebastian Vettel won all nine of the races in the second half of the season, but what this year has shown is that these new regulations and technologies haven’t made a hill of beans difference in the quality of the action that a far less expensive rules package couldn’t have made.

Further, a lot of the action has been wrought through the continued use of the Drag Reduction System (DRS), which artificially gives a following car much more straightline speed since the leading car can’t use its system in that situation, and the appearance of the safety car at several races (most notably Bahrain), which also bunched up the field.

Other than Williams-Mercedes driver Felipe Massa securing pole position in Austria, the Mercedes team has claimed pole at the nine other races – five by Rosberg and four by Hamilton.
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The Storied Tale of the 1991-2005 Acura NSX

Acura NSX aluminum sports car

Acura NSX

The Acura NSX, Honda’s legendary flagship sports car, was the first production Japanese exotic car. It was introduced to the U.S. market (known as the Honda NSX elsewhere) for the 1991 model year, right on the back of the company’s streak of supplying engines to six straight (1986-1991) Formula One Constructors Championships.

What set the NSX apart was its singular focus on delivering an unparalleled driving experience, breaking new ground in handling performance without the traditional quirks and shortcomings of the exotic car genre.
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