Pool Corporation (NASDAQ: POOL ) has been one of the greatest compounders of the last few decades, delivering an above 20% CAGR for over 30 years.Triba Research's mission is to uncover high-quality businesses with the potential to deliver sustainable, double-digit returns over the long term. The investment strategy focuses on identifying companies with strong competitive advantages, operating in growing markets, maintaining low debt levels, and led by a skilled and aligned management team. While Triba Resea ...

Core Insights - Warren Buffett continues to invest in industry-leading companies with strong capital-return programs, despite selling off a significant portion of his holdings in Bank of America [2][5][6] Group 1: Bank of America (BofA) - Buffett has sold over 427 million shares of Bank of America, reducing his stake by 41% over the past year, with the current holding exceeding 1.03 billion shares [6][9] - The selling may be influenced by a favorable corporate income tax rate, as indicated by Buffett's comments during the 2024 annual shareholder meeting [7][10] - BofA's stock is currently trading at a 36% premium to its book value, which may lead Buffett to reassess its attractiveness as a value investment [9] Group 2: Domino's Pizza - Buffett has consistently purchased shares of Domino's Pizza for four consecutive quarters, building a 7.8% stake in the company [12][14] - Domino's has a strong capital-return program, with a history of growing dividends and share repurchases, having retired over half of its outstanding shares since going public [15][16] - The company's innovative initiatives, such as the "Hungry for MORE" program leveraging artificial intelligence, contribute to its growth potential and customer loyalty [16] Group 3: Pool Corp. - Buffett has also increased his stake in Pool Corp. for four consecutive quarters, now holding a 9.3% stake, benefiting from its strong operating cash flow predictability [17][18] - Pool Corp. has seen significant growth since its public debut, with a nearly 47,000% gain including dividends [17] - The company has doubled its share buyback spending in the first half of 2025 compared to the previous year and has consistently raised its dividend for two decades [21]

Group 1 - Warren Buffett is purchasing shares of Pool Corp. due to its attractive pricing and long-term growth potential [1][11] - Pool Corp. operates in two segments: pool construction, which is cyclical, and pool maintenance products, which are essential for pool owners [7][9] - The pandemic significantly boosted new pool construction, leading to a temporary surge in Pool Corp.'s stock price, followed by a decline as the market corrected [8][11] Group 2 - The maintenance segment, which constitutes about two-thirds of Pool Corp.'s business, provides a steady income stream as pool maintenance is a necessity [9][10] - Buffett's investment strategy emphasizes buying well-run companies at attractive prices and holding them for the long term to benefit from their growth [6][12] - The long-term outlook for Pool Corp. suggests a gradual increase in value, making it a potential wealth-building investment for those willing to hold [12][14]

Group 1 - Berkshire Hathaway has reduced its stake in Bank of America, now holding over 605 million shares, which represents an 8.2% stake in the bank and 9.8% of Berkshire's total stock portfolio [3][5] - From July 2024 through the second quarter of the current year, Berkshire has sold approximately 427 million shares of Bank of America, equating to around 41% of its previous position [5] - Berkshire's cash reserves have reached a record $344 billion, attributed to selling shares in Bank of America and other stocks, including Apple [6][10] Group 2 - Berkshire's decision to sell shares may be influenced by the expectation of an increase in the marginal corporate tax rate, allowing for lower tax payments now [7] - The price-to-book ratio of Bank of America was around 1.29 at the start of August, indicating the stock was trading at a 29% premium [7][9] Group 3 - In the second quarter, Berkshire increased its stake in Pool by approximately 136%, now owning over 3.4 million shares valued at over $1 billion [10] - Pool is the largest wholesaler of swimming pool equipment and has seen a stock price return of nearly 47,000% since its IPO in October 1995 [11] - Pool possesses characteristics that align with Buffett's investment criteria, including a competitive moat, consistent profits, shareholder-friendly leadership, and an attractive dividend [13]

The Oracle of Omaha is paring down his No. 1 holding, yet again, in favor of a company that's delivered a nearly 48,000% total return since it went public. Wall Street is full of well-known money managers capable of spotting a good deal. However, none of these fund managers draws the attention of professional and everyday investors quite like Berkshire Hathaway's (BRK.A 0.07%) (BRK.B -0.02%) billionaire CEO, Warren Buffett. The Oracle of Omaha's fame is a direct reflection of his long-term outperformance of ...

Core Viewpoint - Berkshire Hathaway disclosed its Q2 holdings report, revealing a reduction in Apple and Bank of America shares, while also unveiling new investments in healthcare, steel, and real estate sectors [2][5]. Group 1: New Investments - Berkshire initiated positions in six new stocks during Q2, including UnitedHealth (UNH), Nucor Steel (NUE), Lennar (LEN), D.R. Horton (DHI), Lamar Advertising (LAMR), and Allegion (ALLE) [2][6]. - The total market value of these new positions at the end of Q2 was approximately $3.65 billion [6]. Group 2: Reduction in Holdings - In Q2, Berkshire reduced its stake in Apple by 20 million shares, a decrease of about 6.67%, while still maintaining it as the largest holding [9]. - Additionally, Berkshire sold over 26.3 million shares of Bank of America, representing a reduction of approximately 4.17% [9]. Group 3: Market Reaction - Following the announcement of new positions, stocks like UnitedHealth and Nucor Steel saw significant after-hours gains, with increases exceeding 8% [3]. Group 4: Investment Strategy - The new investments are viewed as defensive positions with potential for valuation recovery, aligning with Buffett's investment philosophy of seeking companies with a "moat" [7].

Core Viewpoint - Investors in the Leisure and Recreation Products sector should consider Yeti (YETI) as a more attractive option compared to Pool Corp. (POOL) due to its better valuation metrics and earnings outlook [1]. Valuation Metrics - YETI has a forward P/E ratio of 15.11, significantly lower than POOL's forward P/E of 28.01, indicating that YETI may be undervalued [5]. - The PEG ratio for YETI is 2.17, while POOL's PEG ratio is 4.21, suggesting that YETI has a more favorable earnings growth outlook relative to its price [5]. - YETI's P/B ratio stands at 3.29, compared to POOL's P/B of 8.81, further supporting the notion that YETI is undervalued [6]. Analyst Outlook - YETI currently holds a Zacks Rank of 2 (Buy), reflecting a positive earnings estimate revision trend, while POOL has a Zacks Rank of 4 (Sell), indicating a less favorable outlook [3]. - The solid earnings outlook for YETI, combined with its superior valuation metrics, positions it as the better value option in the sector [7].

Group 1: Bank of America (BofA) - Warren Buffett has sold over 401 million shares of Bank of America, representing approximately 39% of his position, which was originally over 1.03 billion shares [8] - The selling activity is part of a broader trend where Buffett has been a net seller of equities, with $174.4 billion more in stocks sold than purchased since October 2022 [6] - Profit-taking may explain the aggressive selling, as Buffett indicated concerns about rising corporate income tax rates, which could impact BofA's sizable unrealized gains [9] - BofA is particularly sensitive to changes in interest rates, benefiting from rate increases during inflation but facing risks as the Federal Reserve enters an easing cycle [11] - The valuation of BofA has changed significantly since Berkshire first invested, with the stock now trading at a 31% premium to book value, compared to a 62% discount at the time of initial investment [13] Group 2: Pool Corporation - Berkshire Hathaway has been purchasing shares of Pool Corporation for three consecutive quarters, with a total stake now at 1,464,000 shares [16] - Pool Corporation has shown remarkable long-term performance, with shares gaining over 35,000% since its IPO, and nearly 48,000% when including dividends [16] - The company's business model is characterized by recurring revenue streams from maintenance products, making sales and cash flow highly predictable [18] - Pool Corporation is investing in digitization through its software platform, Pool360, which has increased its contribution to net sales from over 12% to more than 16% [19] - The company has a strong capital-return program, spending significantly on share repurchases and dividends, which aligns with Buffett's investment philosophy [20] - Pool Corporation is currently valued at nearly 28 times forward-year earnings, suggesting that its stock may not be considered a bargain by Buffett's standards [21]

or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to POOL CORPORATION (Exact name of registrant as specified in its charter) Delaware 0-26640 36-3943363 (State or other jurisdiction (Commission File Number) 109 Northpark ...

Core Viewpoint - Warren Buffett's investment in Pool Corporation (POOL) suggests confidence in the long-term potential of the swimming pool industry despite current market challenges [1][2][3] Investment History - Berkshire Hathaway initiated a position in Pool in Q3 2024 with approximately 404,000 shares at an average price of $342 [3] - The investment was increased significantly in Q1 2025, with Berkshire holding 1,464,000 shares, a 145% increase from the previous quarter [5] - As of July 28, Pool shares traded at $321, indicating that the investment opportunity identified by Berkshire remains available [5][6] Financial Performance - Pool's Q2 sales were reported at $1.78 billion, reflecting a growth rate of just under 1% [6] - Adjusted earnings per share (EPS) for Q2 came in at $5.17, exceeding expectations of 2.8% growth with an actual growth rate of approximately 3.8% [6][7] - The company adjusted its full-year EPS guidance down by 2.2% to $11.05, indicating challenges in demand management [7][8] Market Conditions - The pool construction market is currently experiencing a downturn, with expectations for no rebound in 2025 due to high interest rates affecting housing turnover [8][9] - New pool construction accounts for only about 15% of Pool's sales, but it is essential for long-term growth as it expands the customer base for maintenance products [10][11] Long-Term Trends - Scientists predict a significant increase in average global temperatures by 2100, which may drive a long-term trend toward increased swimming pool ownership [9][13] - Population migration to warmer Southern U.S. states is identified as a long-term growth driver for the company [11] - Analysts see limited short-term upside for Pool shares, but there is potential for significant appreciation over the long term if favorable trends materialize [13]