Pool Corp. (NASDAQ: $POOL) is one of the few small-cap stocks owned by legendary investor Warren Buffett.
Through his holding company Berkshire Hathaway (NYSE: BRK.B), Buffett has built a stake in POOL stock over the past two years and is now its second-largest shareholder.
Buffett currently owns more than three million shares of the pool equipment supplier, a stake valued at $640.53 million U.S.
The investor no doubt likes Pool Corp.'s strong financials and commitment to shareholder returns.
The company's net income grew 55% between 2019 and 2025, and free cash flow has also risen sharply over the past six years.
As a result, Pool Corp. has a steadily growing dividend that currently yields a strong 2.40%, as well as rising share repurchases – two things Buffett loves as an investor.
In the past 20 years, Pool Corp. has reduced its share count by 32%. And the balance sheet remains healthy with only $1.4 billion U.S. of net debt.
With a price-to-current-year-earnings ratio of 18 times, POOL stock also looks cheap in the current market, something Buffett also prizes.
A market capitalization of $7.65 billion U.S. places Pool Corp. in the small-cap stock camp, and it is one of only a few such stocks owned by Buffett.
The share price has been walloped coming out of the Covid-19 pandemic, having fallen 43% in the past five years.
Buffett has clearly seen the share price decline as a buying opportunity, especially given that Pool Corp.'s finances and shareholder returns remain rock solid.
It might be worth taking the plunge with POOL stock while the share price remains depressed.
COMTEX_476920498/2797/2026-04-09T11:40:59