Billionaire Richard Chilton’s Latest Portfolio: Top 5 Stock Picks

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

Chilton Investment Company’s stake value: $282 million

Percentage of Chilton Investment Company’s Portfolio: 7.86%

Number of Hedge Fund Holders: 52

The Sherwin-Williams Company (NYSE:SHW) is an American company that sells a wide variety of painting and coating products to retail, commercial, professional, and industrial customers. These products include automotive performance finishes, architectural paints, wood finishing, and corrosion inhibitors.

As of the end of June, Mr. Chilton’s investment firm owned 1.2 million The Sherwin-Williams Company (NYSE:SHW) shares. These allowed it to hold a $282 million stake in the company and constituted 7.86% of its investment portfolio. Insider Monkey’s study of 895 hedge funds for the same time period revealed that 52 had also bought the company’s shares.

The Sherwin-Williams Company (NYSE:SHW) is the leading paint provider in the U.S., with its architectural, stain, aerosol, wood sealer, and auto specialty paint brands being the top brands in the country. The firm also has a wide economic profit spread, which is the difference between its return on invested capital and cost of capital. This spread stands at 31.3%, indicating that the company is vastly more profitable and generates higher returns when compared to investor return requirements. The Sherwin-Williams Company (NYSE:SHW) also pays a 60 cent dividend for a 1.08% yield.

The Sherwin-Williams Company (NYSE:SHW)’s second largest investor in our database is Thomas Steyer’s Farallon Capital which owns one million shares that are worth $237 million.

ClearBridge Investments mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Rounding out our risk-focused stance, we believe the addition of Sherwin-Williams (NYSE:SHW), a manufacturer of paints and coatings for professional, industrial and retail customers, adds further resilience in the current inflationary environment. Paint is a relatively small part of total project input costs which can be passed through with price during inflation, and the company has a track record of successfully managing through periods of increased commodity costs. We are attracted to the company’s durability of growth by operating a strong franchise with both organic growth and consolidation amassing a strong portfolio of brands. We like Sherwin-Williams over competitors in the paint industry due to higher volumes, a domestically focused revenue base and strong relationships with the home builder and pro community. We believe the company will be able to keep pricing and expand margins as commodity pressures ease.”

Disclosure: None. You can also take a look at 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen and 10 Best-Performing S&P 500 Stocks in the Last 10 Years.

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