Core Viewpoint - Shares of Pool Corp are currently trading at a lower price than what Berkshire Hathaway paid, presenting a potential investment opportunity, but caution is advised due to market conditions and company performance [1][2]. Company Overview - Pool Corp is the world's largest wholesaler of pools, pool equipment, parts, and supplies, with a significant portion of its revenue derived from servicing and maintaining existing pools [8][10]. - Approximately 64% of Pool's revenue comes from servicing existing pools, while only 14% is from new pool installations [10]. Investment Activity - Berkshire Hathaway began acquiring shares of Pool Corp in Q3 2024, initially purchasing 404,057 shares valued at $152.2 million, and increased its stake to over $1 billion by Q2 2025 [3][4]. - The total stake held by Berkshire in Pool Corp reached 9.2% of the company [4]. Share Price Analysis - The lowest price Berkshire could have paid for Pool shares was $296.17 in Q3 2024, with prices fluctuating in subsequent quarters, reaching a low of $285 in Q2 2025 [5][6]. - Current trading price of Pool shares is $267.06, which is lower than any price Berkshire paid [7]. Market Conditions - Pool Corp's stock price surged during the pandemic due to increased demand for home leisure options, but has since declined due to rising mortgage rates and falling home construction starts [8][9]. - The market for new pool installations remains soft, which is expected to continue until the housing market improves [10]. Valuation and Investment Considerations - Pool Corp is currently trading at a below-average valuation of 26 times trailing earnings and offers a dividend yield of 1.73% [11]. - Long-term investors may find Pool Corp appealing despite near-term volatility, but it may be prudent to wait for signs of recovery in the housing market before investing [11].

Core Insights - Pentair plc is a global leader in water treatment and sustainable fluid management solutions, with a market cap of $18.1 billion [1] - The company is expected to report non-GAAP earnings of $1.18 per share for Q3, reflecting an 8.3% increase from the previous year [2] - Pentair's earnings for the current year are projected to be $4.84 per share, up 11.8% from $4.33 per share reported last year [3] Financial Performance - Pentair's stock has increased by 16% over the past 52 weeks, outperforming the Industrial Select Sector SPDR Fund's 14.8% increase but lagging behind the S&P 500 Index's 17.4% rise [4] - In Q2 2025, the company reported adjusted EPS of $1.39, a 14% year-over-year increase, with net sales rising 2% to $1.123 billion [5] - Management has raised the full-year adjusted EPS guidance to a range of $4.75–$4.85, with projected sales growth of 1%–2% for 2025 [5] Analyst Ratings - The consensus opinion on Pentair is a "Moderate Buy," with 12 "Strong Buys," one "Moderate Buy," six "Holds," and one "Moderate Sell" among 20 analysts [6] - The mean price target for Pentair is $116.28, indicating a 4% upside potential from current price levels [6]