Formula 1 is not just a sport of speed and adrenaline; it’s also a multi-billion-dollar business. From the glitz and glamor of Monaco to the high-speed thrills at Silverstone, F1 brings together an international audience of passionate fans. But did you know you can turn your passion into investment opportunities? That’s right! In this guide, we will discuss how F1 fans can invest in Formula 1 stocks, with a focus on Liberty Media, the company that owns Formula 1. If you’re intrigued by the idea of owning a piece of the F1 pie, keep reading.
Liberty Media: The Gatekeeper of Formula 1 Stocks
Liberty Media Corporation is a mass media company that owns a range of entertainment businesses, but what interests us here is its ownership of Formula 1. Acquiring F1 in 2017, Liberty Media has invested in expanding the sport’s reach and increasing fan engagement. Listed on the NASDAQ stock exchange, Liberty Media is traded under the ticker symbol “FWONK.”
Investing in Liberty Media is the most direct way for an average investor to put money into the F1 ecosystem. When you buy shares of Liberty Media, you are effectively investing in the economic performance of Formula 1, among the company’s other holdings.
Why Consider Investing in Formula 1 Stocks?
Here are some reasons why you might want to invest in F1 stock through Liberty Media:
Growing Global Audience
Formula 1 has a massive global following, attracting millions of viewers for each race. With a growing interest in the sport from new markets like the United States and Asia, the F1 brand continues to grow.
New Revenue Streams
Under Liberty Media’s leadership, Formula 1 has expanded its revenue streams through digital platforms, merchandising, and E-sports, offering a diversified income for the company.
Liberty Media has secured sponsorships and partnerships with major global brands, bringing financial stability and exposure to the sport.
What if I Want to Invest in a Specific Team?
Investing directly in a specific F1 team can be more complicated due to the varied ownership structures of each team. Here’s what you need to know:
Publicly Traded Parent Companies
Some F1 teams are owned by publicly traded companies. For example, Ferrari owns Scuderia Ferrari, and Ferrari is publicly traded. By purchasing shares in such companies, you indirectly invest in their Formula 1 operations.
Private Equity and High-Net-Worth Investment
Teams like Red Bull Racing are privately owned. Unless you’re a high-net-worth individual, direct investment options may be limited or inaccessible.
Limited Public Offerings
Rarely, some F1 teams may opt for public offerings, although this is uncommon. Williams F1 was publicly traded before being acquired by Dorilton Capital.
Occasionally, teams may offer specific investment or sponsorship opportunities, but these are generally not available to the average retail investor.
Consult a Financial Advisor
If you’re interested in investing in a specific team, consult a financial advisor to discuss the feasibility and the potential risks and returns associated with such an investment.
Risks to Consider
Like all investments, buying Formula 1 stock carries some risk. The sport’s revenue is susceptible to economic downturns, and there are other factors like regulatory changes and competition from other sports that could affect its profitability.
How to Invest in Formula 1 Stocks
Investing in Liberty Media, or any F1 stock, is similar to investing in any other publicly traded company. Here are the steps:
Research: Start by researching the performance of Liberty Media’s stock and the health of their other investments.
Consult a Financial Advisor: Before taking any investment steps, consult a financial advisor to see if investing in Formula 1 stocks aligns with your financial goals.
Choose a Broker: Open a brokerage account if you don’t already have one.
Purchase Shares: Once your account is active, you can purchase shares using Liberty Media’s stock symbol, FWONK.
Monitor Your Investment: Keep an eye on the performance of your F1 stock and the broader market.
Investing in F1 stock, particularly through Liberty Media, offers fans a unique way to engage with the sport they love while potentially making some money along the way. Investing in a specific F1 team is a bit trickier but not impossible. Always remember to consult with a financial advisor and conduct your due diligence before making any investment decisions.
Take your F1 passion beyond the racetrack and zoom into the world of Formula 1 stocks. Happy investing!