Representative appearances

• The Dumb Design of Modern Cars

  The Jeep was one of 1.1 million vehicles that FIA Chrysler had recalled months before.

• Timeless Secrets of the World’s Greatest Investors | Warren Buffett, Peter Lynch & More! (TIP762)

  headlines such as fiat teeters on the brink of bankruptcy. Mon gets interested as he checks the price of fiat and sees it trading at the very bottom of the bargain bin. But even though it's cheap, how can a business in just this bad of a financial situation be saved? His answer comes in the form of Sergio Marion, the man who had saved the company in the first place. Moniche begins conducting his due diligence on the business and his skepticism slowly fades as he learns more and more. Fiat Chrysler has a market cap of $5 billion but has annual sales of 140 billion meaning the business was trading at less than 4% of its revenues. Additionally, the company was still turning a profit and a very good one at that given its share price. It had $222 in EPS and was trading at a price of around $4, meaning it had a PE of around two times. Now his eyes really began to widen. But Babry does some more digging. He knows not to fall for every business with low singledigit P multiples because many of these businesses just don't deserve to be held by an intelligent investor. Many of these businesses are on life support and aren't worth the hassle of trying to understand any deeper than that. But Fiat Chrysler has an additional asset that the market is overlooking and that's Ferrari. At this time, Ferrari was a subsidiary of Fiat Chrysler.