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Motley Fool Hidden Gems Investing

Betting On Big Remodel

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 28 March 2024

⏱️ 29 minutes

🧾️ Download transcript

Summary

Home Depot buys a distribution network for landscaping, roofing and pools. (00:14) Bill Barker and Deidre Woollard discuss: - Why Home Depot is buying a distribution network. - The cyclical nature of home remodeling. - If RH’s lofty goals are attainable. (13:34) As a tribute to Daniel Kahneman, we revisit his 2013 conversation with Morgan Housel Companies discussed: HD, RH Claim your Epic discount: www.fool.com/epic Host: Deidre Woollard Guests: Bill Barker, Morgan Housel, Daniel Kahneman Producers: Mary Long, Ricky Mulvey Engineer: Tim Sparks Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Home Depot's largest acquisition ever is all about the pros.

0:07.0

Motley Full Money starts now.

0:10.0

Welcome to Motley Full Money. I'm Deidrow Willard here with Motley Full Analyst

0:17.6

Bill Barker. Bill, how's your Thursday going?

0:19.6

It's going great. Thanks. Well one of the things that's happening today,

0:23.5

an acquisition on a Thursday.

0:25.2

Usually, we see them come in on a Sunday night.

0:27.8

It involves one of my favorite company's Home Depot.

0:30.9

I got up and went to the computer. I'm excited about it. I'm interested in it. So let's talk about what it is. It's a company

0:38.7

called SRS Distribution and if you haven't heard of it you're in good company there's

0:44.9

spending a reported 18.25 billion biggest acquisition the company has ever

0:49.9

made so SRS distribution what is it? Why is this appealing?

0:56.0

Well, it's as it declares in the press release a leading specialty residential specialty

1:02.0

trade distribution, working across professional roofing,

1:06.6

landscaping, and pool contractor supplies.

1:11.0

So a healthy amount of, you know, the professional outdoor and roofing work goes through

1:20.5

SRS. It's a segment of the market that is getting more interest lately, including from

1:28.4

Bradley Jacobs, whose next venture QXO is going to be doing work and sort of rolling up some of this very fragmented

1:38.8

part of the market and expands Home Depot is already healthy professional services sales.

1:45.0

Brad Jacobs, the only man who loves the letter X as much as Elon Musk.

1:49.0

All of his companies seem to have an X in them.

1:52.0

I want to talk a little bit about All of his companies seem to have an X in them.

...

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