How Berkshire’s Growing Stake in Pool (POOL) Has Changed Its Investment Story

In recent days, Berkshire Hathaway has steadily increased its ownership stake in Pool Corp. to 9.3%, reinforcing the continued influence of Warren Buffett’s stock selections. This move highlights significant institutional confidence in Pool Corp., as Buffett’s investment activity is widely regarded as an endorsement of long-term business quality within the public markets. We'll explore how Berkshire Hathaway's growing stake in Pool Corp. could impact its future outlook and perceived investment stability.

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Pool Investment Narrative Recap

To be a Pool Corp. shareholder, an investor generally needs to believe in resilient demand for pools and maintenance, anchored by recurring revenue, demographic trends in sunbelt migration, and effective operational execution. Berkshire Hathaway's increased stake, led by Warren Buffett’s endorsement, is a clear signal of institutional confidence, but it does not meaningfully alter the short-term outlook, as the main catalyst remains broader macro conditions, especially interest rates, and weak housing turnover, with persistent cost pressures as the most material risk.

Of the recent announcements, the upcoming release of Q3 2025 results on October 23 is likely to have the most immediate relevance, providing key insights into sales momentum and profitability amid ongoing challenges in new construction and discretionary spending. While other news, such as strategic partnerships and share buybacks, shape longer-term direction, investors are looking to earnings for evidence of demand recovery and margin stability in the current economic climate.

Yet, in contrast to institutional enthusiasm, investors should not overlook the persistent headwind from high interest rates and a sluggish housing market that...

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 13% upside to its current price.

Exploring Other PerspectivesPOOL Community Fair Values as at Oct 2025

Simply Wall St Community members estimate Pool Corp.’s fair value between US$283.83 and US$333.27, reflecting two distinct views. While this underscores a range of optimism, persistent inflation and subdued construction may curb future earnings, so consider several alternative perspectives before making decisions.

Story Continues

Explore 2 other fair value estimates on Pool - why the stock might be worth just $283.83!

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.

Companies discussed in this article include POOL.

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