Transcript
Introduction
Matt
Welcome back to Business Breakdowns. This is Matt Reustle, and today we are breaking down the paint giant, Sherwin-Williams. Sherwin-Williams is a great example of a company where everyday consumers might not appreciate just how great of a business and stock this has been. Over the last 20 years, Sherwin has compounded earnings at 14% per year. And over those 20 years, the stock has returned 26 times your investment, and that's compared to the S&P at five times your investment. So you get the idea here.
This has been an incredible quiet compounder. My guest today is Todd Basnight, Director of Equity Research at Aureus Asset Management. Todd gets into what makes Sherwin such a special business. It's founded back in 1866, so it has a long history in terms of becoming the giant that it is. But we get into the weeds in terms of the vertically integrated model, the focus on a particular customer base, that is the pros and a management team that's been thoughtful about capital allocation around buybacks versus store growth, versus the potential for M&A and some of the big deals they've done historically.