To capitalize on its deep discount to NAV, Exor employed a sophisticated reverse Dutch auction for share buybacks. This allowed the company to repurchase €1 billion in shares at the lowest prices offered by shareholders, maximizing value accretion.

John Elkan's development as a leader was profoundly shaped by his decision to hire outsider Sergio Marchionne to save Fiat. Marchionne not only executed a legendary turnaround but also became a personal mentor to Elkan, demonstrating the value of external expertise in guiding the next generation of a family empire.

In a world of highly skilled money managers, absolute skill becomes table stakes and luck plays a larger role in outcomes. According to Michael Mauboussin's "paradox of skill," an allocator's job is to identify managers whose *relative* skill—a specific, durable edge—still dominates results.

Public markets punish complexity, creating opportunities. Exor's diverse portfolio of cars, tractors, luxury goods, and media is so heavily discounted that the market value of its Ferrari stake alone is greater than the entire company's market capitalization.

Experience taught Herb Wagner that great leaders consistently surprise on the upside. He now weights leadership quality far more heavily, assessing CEOs not by interviews or charisma, but by their verifiable track record and through trusted backchannel references who have worked with them directly.

Investors should seek "boring" companies that are well-oiled machines with repeatable processes and disciplined execution. The goal is consistency in outcomes, not operational excitement. Predictable, relentless execution is what generates outsized, "exciting" returns.

Instead of complaining that its stock trades at a steep discount to its net asset value (NAV), Exor's management pragmatically views this as a chance to invest in themselves. They trimmed their highly appreciated Ferrari stake specifically to fund share buybacks at this significant discount.

Although Exor's investment in reinsurance company PartnerRe underperformed, the exit was strategically valuable. Beyond the financial return, Exor leveraged the sale to Covea by retaining key talent and forming a partnership with the buyer to launch its new asset management firm, Lingotto.

The key lesson from Exor is that patient, long-term investing doesn't mean avoiding action. Learned from an early survival crisis, their leadership makes a few specific, intentional decisions each year to refresh the portfolio, demonstrating that decisiveness is critical even with a multi-generational time horizon.