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Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
It is never late to invest in an exceptional stock. Just ask the multi -sarren Buffett multi -brilionary, his holding, which, Berkshire Hathawayopened a participation in Pool Corp. (NASDAQ: Pool) In the third quarter of last year. The largest wholesale distributor of teams, pieces and supplies of the world has already made the shareholders quite rich.
The action has returned more than 42,000% during their lifetime.
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What made Pool Corp such a successful investment and should you buy the shares now? Here is what you need to know.
Pool Corp serves more than 125,000 wholesale customers. Most of its business is in the United States, but the company also operates in Canada, Mexico, Europe and Australia.
A pool is a significant investment, especially a pool in the floor, which can cost more than $ 100,000 to build and install. Pool Corp. generates income from three aspects of Pool’s property:
New construction and installation: 15% of the income of 2024
Updates and remodeling: 20% of the revenue of 2024
Supplies and maintenance: 65% of the income of 2024
A key aspect of Pool Corp’s business model. It is that each new pool generates a recurring flow of income, which represents a larger part of the business as Pool Corp. Installs more pools. The recurring revenue of supplies and maintenance was 65% of the sales of 2024, to 60% in 2014.
There are more than 11 million masses of water only in the United States, including 5.4 million pools in the ground. Pool Corp has a competitive advantage As a leader in this fragmented industry, he usually acquires small competitors to expand their market share.
Pool Corp generates more cash flow as the business gets larger and the benefit margins expand. The company requires a minimum investment, so the management assigns most of its cash flow to stock of stock And dividends, further increasing the results by action and investment returns.
It is a round and round round, generating remarkable results for shareholders over the years.
Pools are a luxury purchase for most, so new pool facilities, the first who spoke on this spinning wheel, are susceptible to economic forces. The feeling of consumers declined in the last year and the situation has worsened with the highest interest rates, increasing debt costs and could stop the construction of homes, the key engines of the new pool facilities.