Table of Contents

Exor

Exor N.V. is one of Europe’s largest diversified holding companies, controlled by the Italian Agnelli family, the founders of Fiat. Think of it as the financial mothership for a fleet of world-renowned businesses. Instead of producing cars or soccer jerseys itself, Exor owns significant stakes in the companies that do. Its portfolio is a who's who of iconic brands, including carmaker Ferrari, automotive giant Stellantis (the parent of Jeep, Ram, Peugeot, and Fiat), and the legendary Italian football club, Juventus F.C.. Led by John Elkann, the scion of the Agnelli dynasty, Exor operates with a long-term, value-oriented philosophy, actively managing its collection of companies to create wealth over generations. For an ordinary investor, buying a share of Exor is like hiring a billionaire family's private investment team to manage a slice of your money, giving you instant, diversified exposure to a curated portfolio of businesses.

A Modern-Day Dynasty's Treasure Chest

For over a century, the Agnelli family has been a dominant force in Italian and global industry. Exor is the modern incarnation of their family office, a sophisticated vehicle designed to preserve and grow wealth across generations. It’s not a passive fund; it's an active owner that takes large, often controlling, stakes in its companies. This allows it to influence strategy, appoint management, and ensure its businesses are run with a focus on long-term, sustainable value creation rather than short-term market fads. This patient, owner-operator mindset is a cornerstone of its identity.

What's Inside the Box?

Exor’s portfolio is a fascinating mix of industrial heritage and forward-looking investments. Its major holdings provide a snapshot of its strategy:

The Value Investor's Angle

For followers of value investing, Exor presents a compelling case study for several reasons. It's more than just a collection of good businesses; it’s a structure that can offer unique opportunities.

Buying an Empire at a Discount

A key attraction for value investors is the persistent holding company discount. This means Exor's stock market price is often lower than the combined market value of all the assets it owns. This underlying value is known as its Net Asset Value (NAV). To get a rough idea of the NAV, you would:

  1. 1. Add up the current market value of all of Exor's listed holdings (like its shares in Ferrari, Stellantis, etc.).
  2. 2. Add an estimated value for its private companies and other assets like cash.
  3. 3. Subtract all of Exor's corporate-level debt.

The result is the NAV. If Exor's total stock market value is, say, 25% below its NAV, you are essentially buying a dollar's worth of high-quality assets for 75 cents. This discount is the market's price for corporate overhead and complexity, but for a patient investor, it represents a built-in margin of safety.

The Agnelli Factor: Patient Capital

When you invest in Exor, you're not just buying a basket of stocks; you're partnering with the Agnelli family and their designated leader, John Elkann. The family's multi-generational horizon frees management from the tyranny of chasing quarterly earnings. Elkann has earned a reputation as a shrewd and disciplined capital allocator, making strategic moves like the merger of Fiat Chrysler with Peugeot to form Stellantis—a masterstroke that created enormous value. He actively manages the portfolio, selling mature assets and reinvesting the proceeds into new growth areas. For a value investor, having a controlling shareholder whose interests are aligned with yours and who has a proven track record is a massive advantage.

Risks to Consider

No investment is without risk, and Exor's unique structure comes with its own set of challenges.