Transcript
Introduction
Matt
This is Matt Reustle and today we are breaking down Watsco. They are the market leader in HVAC distribution with a unique value proposition that they offer to the OEMs and suppliers in the space. My guests today are Lucy Adams, investment director at Caledonia Investments, and Alan Murran, co-head of public companies at Caledonia Investments. If you've ever had an air conditioning issue, you call your maintenance contractor and then you have them sit there on the phone as they locate a part.
There's a decent chance it was a Watsco distributor on the other side of that phone call. Lucy and Alan will take us through the history of Watsco and some of the key steps like the initial pivot from manufacturer to distributor, how Watsco formed those key relationships with the major OEMs like Carrier, and then we dissect their reputation for a strong culture, one of those things that can be thrown out there as a term. But here you have an ownership mindset with what has to be one of the most unique employee compensation plans I have ever come across.