So there’s been a few companies where it took me a while to figure out, “Holy cow, this company is a printing press. It has a license to print money and is growing fast.” These come-to-growth moments have been loosely as follows: I came to appreciate Disney in 2013, Visa in 2014, Nike in 2015, and now, in 2016, Sherwin-Williams has really been the business that has come onto my radar after years of neglect.
The stock rarely goes on sale, and I imagine that many people buying it outside of the 2008-2009 period felt like they were paying a higher price than they’re comfortable with. But Sherwin-Williams has such an extended record of growing earnings quickly that the seemingly high price of the moment becomes a pined-for entry point in short order.
These are the total return data points:
Since 1985, Sherwin-Williams (SHW) stock has returned 16.3% per year.… Read the rest of this article!