Pool Corporation’s shares have dropped one-third in value over the past year, underperforming the S&P 500. Warren Buffett’s Berkshire Hathaway bought shares of Pool, but the stock has slid significantly. Pool’s performance is worse against the market, with a 33% drop in a year, and even more over three and five years.

Investing in Pool has underperformed the market by about 47 percentage points over the past year. The slumping housing market is likely to blame, affecting new pool installations and repairs. Pool stock’s three- and five-year performances are better on an absolute basis but much worse when opportunity costs are factored in.

Despite a small dividend, reinvesting would only slightly curb losses. Pool stock’s future recovery depends on real estate outlook changes. Investors may need to be patient, as there’s no guarantee of when the recovery will happen. It’s a reminder to monitor investments regularly, even for buy-and-hold investors.

Berkshire Hathaway’s recent buy of Pool stock may not have been good for investors, as the stock has seen a significant decline. Investing in Pool has underperformed the market, but it may recover with a change in the real estate outlook. Monitoring investments regularly is crucial for long-term success.

Read more at Yahoo Finance: Has Buffett’s Recent Buy of POOL Stock Been Good for Investors?