My investment thesis for Watsco (WSO) is based on the company's embrace and development of technology as an industry disruptor.
Watsco is the top HVAC/R (heating, ventilation, air conditioning and refrigeration) distributor in North America. It has grown, primarily, through acquisition - more than 60 since 1989. In the past decade, revenue has increased 68% from $2.84 billion in 2010 to $4.77 billion in 2019.
Source: Author-created from company data
Acquisition Strategy
Watsco's acquisition growth strategy is atypical compared to most businesses. In most acquisition scenarios, the acquiring company focuses on finding synergies