👑 Cooling King
Is Watsco an interesting stock?
Hi Partner 👋
I’m Pieter and welcome to a 🔒 subscriber-only edition 🔒 of Compounding Quality.
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Watsco is an amazing business.
The stock returned 44,000% (!) to shareholders since 1990.
This means an investment of $10,000 turned into $4.4 million!
It’s one of the best-performing stocks ever.
Why is Watsco such a good business?
Here’s the essence of the investment case in 5 bullet points:
Watsco is the largest distributor of air conditioning, heating, and refrigeration (HVAC) in the United States
Serial acquirer with decentralized business model (just like Constellation Software)
Ownership culture: insiders own more than 60% of the voting power and almost 50% (!) of employees own shares of the company
Strong competitive advantage based on pricing power, a strong reputation, and economies of scale
Compounding Machine: Watsco returned 20% per year to shareholders since its IPO in 1980
In a full investment case of 31 pages, I’ll teach you everything you need to know about this interesting company.
We also dive into the company’s valuation. Is it interesting to buy Watsco today?