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Watsco, Inc.

WSO position long Gavin Baker

Thesis

Watsco is a technology-enabled distributor in an industry dominated by small operators. Their app connects contractors, streamlining business operations and pricing, which will help them gain a competitive edge.

Did it work?

inconclusive confidence: low

The pitch is a qualitative long thesis on Watsco's technology-enabled distribution advantage, but no price performance is available and the time elapsed is unknown. There is also no evidence provided on whether the thesis's core claim — market share gains driven by its contractor app and technology platform — has materialized. Without either return data or confirmation of the thesis dynamics, no judgement can be made.