5 Stocks to Buy According to Peter Simmie’s Bristol Gate Capital

3. The Sherwin-Williams Company (NYSE:SHW)

Bristol Gate Capital Stake Value: $116,279,000
Percentage Bristol Gate Capital’s 13F Portfolio: 5.22%
Number of Hedge Fund Holders: 53

The Sherwin-Williams Company (NYSE:SHW) is a paint and coatings manufacturer and retailer. On February 16, The Sherwin-Williams Company (NYSE:SHW) declared a quarterly dividend of $0.60 per share, an increase of 9% over the $0.55 paid in the same quarter in 2021.

On January 28, Mizuho analyst Christopher Parkinson trimmed his price objective on The Sherwin-Williams Company (NYSE:SHW) to $350 from $353 and reiterated a Buy rating on the shares. The analyst projected that The Sherwin-Williams Company (NYSE:SHW) would have a challenging first quarter but that supply constraints would improve in Q2.

During Q4 2021, Peter Simmie’s Bristol Gate Capital held 330,189 The Sherwin-Williams Company (NYSE:SHW) shares, which were worth $116.28 million and represented 5.22% of its portfolio. Of the 53 hedge funds that were bullish on The Sherwin-Williams Company (NYSE:SHW) according to the fourth quarter database of Insider Monkey, Chilton Investment Company is the leading stakeholder of the company, holding 1.17 million shares worth $412.05 million.

In its Q4 2021 investor letter, Giverny Capital Asset Management mentioned The Sherwin-Williams Company (NYSE:SHW). Here is what the fund said:

“Our fourth-largest holding at year-end was Charles Schwab. Schwab shares rose 60%, buoyed by twin tailwinds of asset growth and the prospect of rising interest rates. Schwab is an exceptional business – it has grown new brokerage accounts at a steady 5%-6% clip for many years, and even faster recently. It has won the trust of retail investors – it’s hard to overstate how important trust is in financial services – but also offers financial advisers a low-cost custodial solution that has helped it win large chunks of business from legacy players like Merrill Lynch or Morgan Stanley. Schwab earns the bulk of its profit on interest rate spreads, or the difference between what it earns on cash deposits held in customers’ brokerage and bank accounts and what it pays to the owners of those accounts. As interest rates rise, so Schwab’s earnings. We’re happy about that, but we see Schwab continuing to grow brokerage accounts for years to come.”