Today we are breaking down the paint giant Sherwin-Williams. Founded in 1866, 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 26x your investment. And that's compared to the S&P at 5x your investment. This has been an incredible quiet compounder. 
My guest today is <a href="https://aureus-asset.com/team/todd-basnight/">Todd Basnight</a>, director of equity research at Aureus Asset Management. We discuss the business’s vertically integrated model, the focus on a particular customer base, a management team that's been thoughtful about capital allocation, and some of its big deals historically. Please enjoy this Breakdown on Sherwin-Williams.

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Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:04:36) Sherwin Williams' Business Model and History
(00:08:46) The Paint Stores Group: Sherwin Williams' Crown Jewel
(00:14:37) Professional Painters vs. DIY: Market Dynamics
(00:19:43) Sherwin Williams' Controlled Distribution Model
(00:28:24) The Valspar Acquisition and Consumer Brands
(00:32:52) Exploring the Industrial Coatings Market
(00:36:43) Sherwin's Performance in the Automotive Market
(00:38:03) Sherwin's Growth and Market Share
(00:39:32) Financial Overview and Store Economics
(00:41:17) Sherwin's Competitive Edge and Market Dynamics
(00:50:59) Capital Intensity and Free Cash Flow
(01:00:00) Risks and Management Changes
(01:04:24) Lessons from Sherwin-Williams

Sherwin-Williams: Brushstrokes of Success - [Business Breakdowns, EP.183]

Today we are breaking down the paint giant Sherwin-Williams. Founded in 1866, 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 [&hellip;]

Business Breakdowns Episode #183

Sherwin-Williams: Brushstrokes of Success - [Business Breakdowns, EP.183]