Pool Corporation: I Found A Hidden Gem In The Swimming Pool

Sep. 27, 2022 5:44 AM ETPool Corporation (POOL)13 Comments
King Lam Chan profile picture
King Lam Chan
114 Followers

Summary

  • Pool Corporation had an incredible return of 35,000% since being listed in 1995.
  • The fundamentals of POOL still look sound and robust despite challenges under the current economic backdrop.
  • Even if the earnings of POOL decline 50% in 2023, the PE ratio will still be lower than the 5-year average.
  • It is a no-brainer buy at its current valuation.

Splash Of Diamond

BlackJack3D/iStock via Getty Images

A Hidden Gem Revealed

I found a hidden gem in the swimming pool, and that's the shares of Pool Corporation (NASDAQ:POOL).

The company has a 190% return over a five-year period, outperforming the S&P 500 index by over 140%, and had an incredible

This article was written by

King Lam Chan profile picture
114 Followers
A newly chartered surveyor. I like to study how the gurus like Warran Buffett and Charlie Munger invested. I am interested in studying the fundamentals of companies that are at scale and grow consistently. Companies enjoying economies of scale have an unfair advantage in outpacing others. I also love to use REITs as an inflation hedge.

Disclosure: I/we have a beneficial long position in the shares of POOL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am not a professional investment advisor. No information in this publication is intended as investment advice to buy/sell. The past performance data shown is not a guarantee of future results.

Recommended For You

Comments (13)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.