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Show Notes

[00:03:10] - [First question] - What the customer strategy is for Home Depot and how it differs from Lowe’s

[00:05:28] - How the sales process works for a pro versus a DIY builder

[00:07:38] - The size of the addressable market and how much of it Home Depot controls

[00:08:47] - Home Depot’s history and its role in developing and growing their industry

[00:11:39] - When Home Depot was founded and their original go-to-market strategy

[00:13:38] - What drove their decision to stop expanding stores and honing their offering

[00:14:56] - Their revenue model and growth over time and the correlation between revenue and the housing market

[00:18:10] - How much revenue growth can be traced to in-store traffic and what’s driving it

[00:20:19] - Managing inventory availability and the role it plays in financial performance

[00:21:55] - Overview of their economic model as a whole

[00:23:42] - Their earnings profile and overall leverage compared to Lowe’s

[00:24:54] - How they position themselves for more of their business to be done online and thoughts on their CAPEX budget

[00:27:56] - Who Home Depot purchases from and how they navigated the pandemic

[00:33:23] - Other macro impacts they’ve endured since early 2020

[00:35:05] - Their labor pool and inflationary pressure on wages

[00:37:09] - Thoughts about Home Depot’s growth over the next three to five years

[00:41:40] - How much historically there has been a growth lag after bubbles and crashes

[00:44:12] - Whether or not new home purchases and refinancing during the pandemic might impact Home Depot’s trajectory

[00:47:27] - Thoughts on Amazon potentially becoming a competitive threat

[00:49:37] - Other risks that are top of mind when thinking about Home Depot’s future

[00:53:51] - Lessons for investors and builders when studying Home Depot’s story