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REV UP YOUR PORTFOLIO: HOW TO INVEST IN FORMULA 1

Are you an adrenaline junkie who also loves the thrill of the stock market? Welcome to the fast lane of investments—Formula 1.

With multiple financial instruments available on online platforms, individual investors can now pump their portfolios with a dose of high-octane excitement. Dive into different ways to participate in the Formula 1 frenzy using stocks, cryptocurrencies, and other asset classes.

Last Update

4.10.24

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Stocks: The Pitstop for Traditional Investors


For investors who prefer a more conventional, well-paved track, diving into Formula 1 through stocks is a solid option. Companies tied to the F1 ecosystem offer a direct gateway to this high-octane sport, allowing you to tap into its financial performance. Take Liberty Media (NASDAQ: FWONA), the corporation that owns the commercial rights to F1. Buying shares in Liberty Media gives you exposure to the sport's revenue streams—from broadcast rights to sponsorship deals—and to its broader media empire.


But that’s not where the pit lane ends. You can also invest in car manufacturers with a deep involvement in Formula 1. For instance, Ferrari (NYSE: RACE), a marquee name synonymous with F1, offers an enticing investment. While Ferrari's stock performance is influenced by its road car sales, the prestige and success of its F1 team often drive fan engagement and brand value, indirectly impacting the stock price.


Additionally, investors can look at companies like Mercedes-Benz Group AG (formerly Daimler, OTCMKTS: MBGYY), whose Formula 1 team, Mercedes-AMG Petronas, has dominated the sport in recent years. Beyond their racing team, Daimler’s broader innovations in automotive technology, particularly in electric vehicles, position it as a long-term growth play.


For those who want more diversification, you could explore automotive-themed exchange-traded funds (ETFs) that include these F1-affiliated companies. One example is the Global X Autonomous & Electric Vehicles ETF (NASDAQ: DRIV), which includes companies like Ferrari, Tesla, and other automotive innovators. While this doesn’t limit you to Formula 1, it gives you a broader exposure to the future of the automotive industry, part of which is intertwined with F1 through technology transfers and sponsorships.


Don’t forget about secondary players, either. Companies such as Pirelli (BIT: PIRC), the exclusive tyre supplier for F1, or even technology partners like Honeywell (NASDAQ: HON), which provides technical components for various teams, offer intriguing ways to diversify your stock portfolio while keeping a foot in the racing industry. Remember, each team’s performance can impact the value of these stocks—so keep an eye on those lap times!

Cryptocurrencies: Turbocharge Your F1 Investments


If stocks feel too slow for your taste, why not hit the gas and dive into the world of cryptocurrencies, where F1 has also made an impressive entry? F1 teams have started issuing fan tokens that offer fans—and investors—a way to participate directly in the team’s ecosystem. For instance, tokens like the AlphaTauri Token or Aston Martin Token, available on platforms such as Socios.com, allow you to own a piece of the F1 experience. These tokens provide exclusive perks like voting rights on team decisions, access to unique content, and even the potential for VIP experiences at races.


But tokens are just the beginning. The integration of F1 into the crypto world doesn’t stop there. With partnerships between teams and crypto exchanges becoming more common, platforms like Crypto.com, one of F1’s official sponsors, provide a seamless way to invest in the digital assets linked to the racing industry. These crypto platforms aren’t just about sponsorships—they also allow you to trade fan tokens, purchase NFTs, or even get exposure to blockchain projects with partnerships with F1 teams.


Take NFTs, for example. Formula 1 has dipped its toes into the world of digital collectables. The F1 Delta Time game, a blockchain-based project, allows users to buy, sell, and trade unique NFTs tied to F1 cars, drivers, and tracks. While the game has been paused, the NFT assets have real-world value and could appreciate over time if blockchain gaming continues to grow in popularity.


And, of course, there’s the adrenaline-fueled volatility of the crypto market itself, which mirrors the fast-paced, unpredictable nature of Formula 1 racing. Whether you’re trading fan tokens or investing in cryptocurrency platforms like FTX (before its collapse) or Crypto.com, remember that great responsibility comes with great power (and volatility). Buckle up because this ride can get bumpy.

Ferrari

Alternative Assets: Diversifying Your Racing Portfolio


If stocks and cryptos still leave you wanting more, a whole other dimension of investing is tied to Formula 1—alternative assets. F1 offers a wealth of collectables and exclusive assets for the passionate fan or high-net-worth individual. From signed memorabilia to rare F1 car scale models, these items can be traded on platforms like eBay or Catawiki. While it’s hard to put a price on nostalgia, these collectables' value can be appreciated over time, especially if the item is tied to a legendary race or championship-winning season.


For the more serious investor, consider investing in F1 infrastructure itself. Thanks to asset leasing platforms like Fractional, you can own shares of real-world assets tied to the sport, such as hospitality suites at Grand Prix events or even pieces of race-related property. These types of investments not only diversify your portfolio but also provide a blend of financial and experiential returns. Imagine owning a piece of the Monaco Grand Prix experience or leasing out a suite for corporate events—it’s both an investment and a ticket to exclusive F1 experiences.


Then there’s the art of collecting high-end F1-related artwork and luxury timepieces. Many high-end watchmakerslike TAG Heuer and Richard Mille have created limited-edition watches commemorating iconic F1 moments or teams. These timepieces often appreciate value, making them both a fashion statement and a smart investment.


You can even invest in vintage F1 cars in the realm of more traditional alternatives. While not a liquid asset, owning a piece of F1 history could yield significant returns over time, particularly as these vehicles become rarer and more sought after by collectors. With specialist auctions for classic F1 cars fetching millions, this investment could put a little vroom-vroom in your portfolio.

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