During the quarter, the Fund added significantly to its small position in Sherwin-Williams (SHW, Financial). This had become an expensive growth stock during the pandemic as people spent more money on home improvement. But with the market beginning to anticipate consumers spending more time and money away from home, Sherwin-Williams' valuation on some measures has declined to a 10-year low. This has given us the opportunity to buy a company with excellent long-term growth at a very attractive valuation. For many years, the Fund held a large position in Valspar, which Sherwin-Williams acquired in 2017 for cash.
At that time, Sherwin-Williams' stock appeared too expensive, and that kept the Fund from acquiring more. With our patience and our focus on the long term, we waited for a better price, and we've been building our holdings into a larger position.
From Mairs & Powers Growth Fund's first-quarter 2021 shareholder letter.
