| You may not have heard of Pool Corp. (Nasdaq: POOL), but this company is a long-term stock market superstar. Pool Corp. is the largest seller of swimming pool parts, supplies and related outdoor living products. In total, Pool Corp. has more than 400 sales locations in the U.S., Europe and Australia. But 90% of its business is done in the U.S. When I say the company has been a superstar, I mean it. Since going public in 1995, Pool Corp.'s stock has gone up an incredible 39,210%! That compares pretty favorably with the 594% return that the S&P 500 has put up over the same time. A $10,000 investment made in Pool Corp. in 1995 would now be worth a cool $3.9 million! Personally, I never wanted a swimming pool. But my wife and kids wanted one, so I quickly lost that battle. What I've learned since we installed our pool last year is that once you have it, you have created a permanent cash outlay. We continually need to spend on the chemicals, filters and other supplies needed to keep the pool in swimming shape. And our pool is brand-new. But after a couple of years, we will be spending on parts replacements and other maintenance. (My vote was for a cabin, which would have at least appreciated in value!) For my family, the pool is now a lifetime expense. But for companies like Pool Corp., it's a lifetime of revenue. Given the stock's meteoric rise, has Pool Corp. already seen its heyday? Or, thanks to its business model of recurring revenue, are its best days still to come? | 
No comments:
Post a Comment
Keep a civil tongue.