6. The Beauty of Repeat Business

One of the things you should look for as an investor is predictability. It’s comforting not only to have a handle on what a company’s earnings are and how they make their money, but also what business might look like past the current quarter.

Just Add Water

That’s why I like POOLCORP (POOL), the world’s largest wholesale distributor of swimming pool supplies, equipment, and accessories. They like to boast that they sell “everything but the water.” POOLCORP is one of our favorite and most successful companies, and it’s headquartered in Covington, Louisiana, a quiet bedroom community outside New Orleans and not too far from Tulane.

S&P 500 Index vs. POOLCORP

The thing with swimming pools is that you have to maintain ...

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