Could Investing $10,000 in Pool Corp. Make You a Millionaire?

So could another leg up be in the cards

Nevertheless, It looks at least one minent investor -- Berkshire Hathaway, an owner of the stock -- thinks so, given current economic conditions

Let's consider perhaps why

Additionally, Has a growth bias Pool sells the supplies needed to build, upgrade, and maintain pools (something worth watching)

Additionally, It's a pretty mundane, but there's an interesting aspect to owning a pool that has to be considered; once you build a new pool, it has to be perty maintained, or it can quickly become a nasty swamp in your backyard instead of a place to have some family fun, in this volatile climate

Additionally, This gives Pool's a growth bias, given current economic conditions

Image source: The Motley Fool

Additionally, Roughly two-thirds of Pool's sales are derived from maintenance and repair ducts

Every new pool that gets built increases the customer base for this side of the

On the other hand, Nevertheless, And that new customer doesn't go away until the pool in question is torn out

This analysis suggests that other third or so of the is related to the building of new pools and the renovation of older pools

The evidence shows construction of pools tends to be highest when economic conditions are good, in light of current trends

However, So recessions can be particularly bad for Pool's overall over the short term

Higher interest rates have also been an issue recently, because it makes it harder to afford a pool

This helps explain the drop in Pool's price

Additionally, Not only were interest rates lower then, but people were forced to stay at and had nothing to do

A lot of people built pools, supercharging Pool's financial results

Additionally, Warren Buffett and Berkshire Hathaway buy Pool At the peak, Pool was bably a bit expensive

Furthermore, When the stock tanked, however, it peaked the interest of Warren Buffett and Berkshire Hathaway (remarkable data)

Buffett s to buy well-run companies when they appear attractively priced

However, But the real key is that he then s to hold them for the long term to benefit from the growth of the es over time

Additionally, This makes Pool something of an interesting story for investors

Wall Street bably got overexcited the stock during the pandemic (this bears monitoring)

But now that the s have fallen so much, it seems the inherent growth bias of the is being overlooked

That's not to suggest that Pool isn't facing headwinds, but that those headwinds aren't ly to derail the company over the long term, given the maintenance component that underpins the

There's no way to know the answer to that, of course, but given the nature of the, it seems a very real possibility

Furthermore, That said, you'll need to buy and hold for the long term, Buffett

Additionally, This isn't a that is ly to see overnight success -- slow and steady gress is the ly norm, in this volatile climate

But slow and steady can build massive wealth over the long term

Buffett's lead with Pool

On the other hand, You should never buy a stock just because some other investor has bought it

You need to make sure it jives with your own investment apach

But if you have a growth bias and a long-term time frame, the inherent growth built into the pool supply side of the could make this stock worth a deep dive today, in today's market environment

Reuben Gregg Brewer has no position in any of the stocks mentioned (an important development)

On the other hand, The Motley Fool has positions in and recommends Berkshire Hathaway (something worth watching)

The Motley Fool has a disclosure policy (remarkable data).