Sponsored content from InvestorPlace Hey there Reader, I only like to share things with you guys that I trust you will LOVE. And I know my Master in Trading peeps love: 1 - divergences 2 - long and short pairs 3 - and FREE stuff So, I knew you'd like it if I kicked you over an invite to my colleague Eric Fry's latest streamer, "Sell This, Buy That." Eric is a bit of a legend in our industry — mostly because he has an unmatched track record of picking stocks that go on to soar to 1,000% or higher. I think he's at 41 and counting. No joke. But what I really love about Eric is that he can project with uncanny accuracy when big name, well-loved stocks are on the verge of melting down. AND he's almost always got a an "upgrade stock" (as he likes to call them) ready to go that you can replace the losers with. Looking at this track record on these "Sell This, Buy That" pair trades is like a master class in stock picking. I just learned that it was this skill that got Eric crowned "America's Top Trader" in Wall Street's hugely prestigious investing competition, Portfolios with Purpose. In the end, he beat out everyone and the market more than 10-fold using this strategy. Today, Eric's giving our Masters in Trading crew a chance to follow his current "Sell This, Buy That" trade ideas — at no cost. These are pretty contrarian takes, but I know my people aren't scared of that. SELL Amazon. BUY[Click to Reveal] SELL Bank of America. BUY[Click to Reveal] SELL Tesla. BUY[Click to Reveal] Eric gives away all these names, tickers and full analysis right here at no cost.  Watch Eric Fry's "Sell This, Buy That" broadcast now and get 7 free trade ideas from a stock-picking legend. Sincerely, Jonathan Rose
Founder, Masters in Trading
Further Reading from MarketBeat Should Investors Lock Arms With Buffett and Dive Into POOL Stock?Written by Leo Miller 
Key Points - As of March 31, Berkshire Hathaway amassed an over $450 million stake in shares of POOL.
- Combining Berkshire data and POOL's price action shows that investors can still get in on the opportunity that Buffett sees in this name.
- Long-term, POOL has multiple key tailwinds that could make the stock a big winner.
Warren Buffett is one of the most successful investors of all time, with many market participants closely watching the Oracle of Omaha's stock picks. While markets focus on flashy artificial intelligence plays, Buffett is staying true to form. Through Berkshire Hathaway (NYSE: BRK.B), he’s quietly built a position in a little-discussed name. That stock is Pool (NASDAQ: POOL), the world’s largest wholesale distributor of swimming pool supplies, equipment, and related leisure products. The firm’s relatively unexciting industry begs the question: what does Buffett see in this consumer discretionary stock? The investment was at least somewhat validated after the company’s latest earnings, as shares spiked afterward. Below, we’ll detail Berkshire’s investment history, looking to understand whether it still sees value in this name. We’ll examine the company’s latest results and posit why Berkshire invested in the stock. Ultimately, does Pool represent a compelling investment? Berkshire Data Indicates Opportunity Is Still Available in POOL Shares According to Berkshire’s 13F SEC filings, the company initiated a position in Pool back in Q3 2024 of around 404,000 shares. During that quarter, Pool’s average closing price was around $342, indicating that Berkshire saw the stock as a good buy near this level. Berkshire continued purchasing shares in Q4 2024 and Q1 2025. In Q1 2025, Pool’s average price was $336, but it closed as low as $317. As shares fell, Berkshire massively increased its stake. At the end of Q1, Berkshire held 1,464,000 shares, a 145% increase versus Q4 2024. As of the July 28 close, Pool trades at $321. This figure is below the stock’s lowest closing price in Q1, the quarter when Berkshire added around 865,000 shares to its position. All else equal, this indicates that investors have not missed out on whatever opportunity Berkshire saw in Pool. So, what do Pool’s latest results tell investors about the company, and why was Berkshire comfortable having approximately $466 million invested in the name at the end of Q1? Financials Hold Steady Through Weak Demand; Buffett Eyes Long-Term Tailwinds In Q2, Pool’s sales came in nearly in line at $1.78 billion for a growth rate of just under 1%. However, the stock did manage a moderate beat on adjusted earnings per share (EPS), with the figure coming in at $5.17. This growth rate was approximately 3.8%, compared to expectations of 2.8% growth. Despite this beat, the company adjusted the midpoint of its full-year EPS guidance down 2.2% to $11.05. Overall, the firm’s results suggest it is doing a better-than-expected job of managing costs, but a weak demand environment is weighing on expectations. This comes as pool construction is in a downturn, and the company doesn’t expect a rebound in 2025. High interest rates are affecting this. They reduce housing turnover, and people often build pools when they switch homes. Shares spiked as much as 8% on July 24 after the results, but closed up only around 3%. Known as a long-term investor, Buffett is likely betting on a long-term trend toward swimming pools becoming a larger part of society. Driving this trend is the fact that scientists estimate that average global temperatures will increase by between 0.5 °C (0.9 °F) and nearly 5 °C (9 °F) by the year 2100. The company says that new pool construction makes up only about 15% of sales. Still, it's crucial for long-term growth. New pools expand the customer base to which the firm can sell its pool maintenance products. This allows the company to generate higher recurring sales over time, which drives the majority of its revenue. Pool also notes population migration to warmer Southern U.S. states as a long-term growth driver. Indeed, the last Census found that the South was the fastest-growing region in the country. Interest Rate and Temperature Changes Would Be Huge for Pool Shares Long-Term Since 2000, the average monthly effective federal funds rate has been around 2%. Currently, it is at 4.33%. This suggests there could be a significant reversion back to these average levels in the long term. If this happens, pool construction should recover, benefiting demand for the ancillary pool products the company sells and thus shares. Should the trend of rising temperatures continue, this adds a powerful long-term tailwind to Pool stock. Wall Street analysts see very limited 12-month upside potential in Pool shares. However, as Berkshire is likely betting on, the stock has a significant opportunity to appreciate over an extended time frame if the trends discussed above come to fruition.
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