Group 1 - Pool Corp. holds a dominant market share in a fragmented and growing market, providing a strong investment case [2] - Approximately two-thirds of Pool Corp.'s sales are derived from the maintenance and repair of existing swimming pools, including chemicals and equipment [4] - The company exhibits relatively high profit margins and consistently high return on invested capital (ROIC), indicating effective investment strategies [5] Group 2 - Pool Corp.'s margins and ROIC experienced a decline in 2022 due to a correction following the pandemic-induced spending boom [7] - Despite a slowdown in new pool construction, the growing installed base of pools is expected to drive revenue from maintenance and repair services [8] - The company is anticipated to return to its long-term growth trajectory once the new pool construction market stabilizes [8]
If I Could Buy Only 1 Warren Buffett Stock Over the Next 10 Years, Pool Corp. Would Be It. Here's the Key Reason.