As the stock market enters a possible phase of correction, I wanted to add some defensive stocks to my portfolio. I define a defensive stock in the current environment as an “essential” business that will do well regardless of a possible second wave or extended lockdown. I believe Watsco (WSO) is one such company.
Just a brief background on the company. Watsco is North America’s largest distributor of HVAC/R (“Heating, Ventilation, Air Conditioning and Refrigeration”) equipment and supplies. The company distributes a wide array of products from residential air conditioning to industrial refrigerators