Does Berkshire’s Growing Stake in Pool (POOL) Reveal a Shift in Long-Term Conviction?

• Recent reports show that Berkshire Hathaway, under Warren Buffett's leadership, has steadily increased its stake in Pool Corporation, now owning 9.3% of the company as of 2025. Heightened institutional ownership by Berkshire Hathaway is regarded by many investors as a signal of long-term confidence in Pool's future prospects.
• We'll now examine how Berkshire Hathaway's increased stake may influence Pool Corporation's investment narrative and market perception.

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Pool Investment Narrative Recap

To be a Pool Corporation shareholder, you need to believe in the long-term growth of outdoor leisure spending, resilient demand for pool maintenance, and the company’s ability to manage cyclical US housing trends. Berkshire Hathaway’s increased stake suggests heightened institutional confidence, but this move does not materially address the key short-term catalyst, the pace of recovery in housing turnover, or the biggest risk: continued weakness in new pool construction amid high interest rates.

Among recent announcements, Pool Corporation’s new strategic partnership with Aiper to launch robotic pool cleaners in 2026 is most relevant here. While it could strengthen Pool’s product portfolio and recurring revenue, this development alone is unlikely to offset the ongoing pressures from subdued new pool construction and shifting consumer demand.

However, investors should be aware that, despite strong institutional backing, persistent high interest rates continue to weigh on housing-related demand and...

Read the full narrative on Pool (it's free!)

Pool's narrative projects $5.8 billion revenue and $475.4 million earnings by 2028. This requires 3.5% yearly revenue growth and a $66.6 million earnings increase from $408.8 million.

Uncover how Pool's forecasts yield a $333.27 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Two members of the Simply Wall St Community value Pool Corporation between US$284.07 and US$333.27 per share. In contrast, ongoing weakness in new pool construction remains a challenge for future top line growth, making alternative viewpoints essential to consider.

Explore 2 other fair value estimates on Pool - why the stock might be worth just $284.07!

Build Your Own Pool Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pool research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Pool research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pool's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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