Look, I love Warren Buffett. His words and career make up the foundation on my entire investment philosophy, and honestly I regard him as a sort of mentor. That said, I don’t go out any buy whatever Berkshire is buying. As I write this, I still don’t own shares of Pool Corporation, but the market hasn’t yet opened for the day, so that could all change by the closing bell.
While I may not blindly copy great investors like Warren, I do find it helpful to try and understand their positions. In doing so I can usually learn something, and occasionally I agree so much with what I believe to be their thesis that I actually do go and buy the thing. Thats what happened with AMR/HCC and it may be happening today with Pool Corporation. This company is quite boring and unexceptional at a glance, but as I began to dive deeper I started getting that little tingly feeling I experience when I find something I both understand and like.
Pool Corp ($POOL) is a capital-light, moat-y compounder with some short-term headwinds and long-term tailwinds. Their business model is solid and their dominant market position remains undisputed. Capital returns, steady growth, and a strong balance sheet all equal the sort of company an investor like me would want to own for the long run. Alright, lets dive in (wink).