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Buffett's Bet Sinks: Pool Corp. Plunges 33%

Summary

  • Pool Corp. stock dropped 33% in the past year.
  • It underperformed the S&P 500 by 47 percentage points.
  • Longer-term returns show significant negative performance.
Buffett's Bet Sinks: Pool Corp. Plunges 33%

Warren Buffett's Berkshire Hathaway has faced scrutiny for its investment in Pool Corp. (POOL). Over the past year, POOL stock has declined approximately 33%, falling from around $400 to $245 per share. This performance significantly lagged the S&P 500, which grew by 14% during the same period, indicating a notable underperformance of about 47 percentage points.

The stock's poor performance is attributed by most analysts to a slumping housing market, which impacts new pool installations and renovations. This downturn has affected investors who purchased shares around the same time as Berkshire Hathaway's investment approximately one year ago.

Looking at longer timeframes, Pool Corp.'s medium-term performance has been equally disappointing. Despite absolute gains over three and five years being slightly better, the opportunity cost is immense when compared to the S&P 500's growth of nearly 75% and 100% over those respective periods. Investors who bought at the peak in late 2021, during a surge in pandemic-era demand, have experienced even steeper losses.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

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