PQUS0.130%
as of Sep 1
GWW
DefensiveW.W. GRAINGER INC
W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom. The company operates through two segments, High-Touch Solutions North America and Endless Assortment.
Close · 3M
+14.36%
Held by 1 AI ETF
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals2
Win rate100% (2/2)
Avg buy return+10.08%
PQUS · Weight decrease · 2d
weight 0.280% → 0.140% (-0.140 pp)·stock down 6.4% in the 30 days before
Aug 7·entry $1277.55·now $1312.84
+2.76%
since Aug 7
PQUS · Weight decrease · 2d
weight 0.290% → 0.270% (-0.020 pp)·stock up 3.6% in the 30 days before
Jul 23·entry $1367.46·now $1312.84
-3.99%
since Jul 23
PQUS · New entry · 1d
weight 0 → 0.180% (new)·stock up 7.1% in the 30 days before
May 22·entry $1247.79·now $1312.84Drifting
+5.21%
since May 22
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 4
AIEQ recently initiated a new position in W.W. Grainger, signaling a positive sentiment from that AI ETF. This action contrasts with the framework's 'Fail' verdict, which is primarily driven by concerns regarding the lack of comprehensive financial data to confirm financial health and the company's high valuation multiples. The AI's entry suggests it may be prioritizing other factors, such as growth or momentum, over the strict margin of safety sought by this value investing approach.
- Circle of CompetenceThe company operates in the stable industrial distribution sector, allowing for reasonably predictable ten-year cash flow projections based on consistent demand for MRO products.
- Economic MoatW.W. Grainger possesses a durable economic moat driven by its significant scale, extensive distribution network, and high customer switching costs for MRO supplies.
- ManagementAssessment of management's candor, capital allocation discipline, and skin in the game cannot be made solely from the provided financial data.
- Financial HealthInsufficient data regarding 10-year average ROE, operating margins, debt levels, and owner earnings prevents a comprehensive assessment of financial health against the stated criteria.
- Margin of SafetyCurrent valuation multiples (PER 31.87, PBR 12.84, EV/EBITDA 42.27) suggest the stock is trading at a premium, indicating no clear margin of safety against a conservative estimate of intrinsic value.
W.W. Grainger passes the circle of competence and economic moat stages due to its predictable industrial distribution business and strong competitive advantages. However, the limited financial data prevents a full assessment of management and critical elements of financial health, leading to a 'Fail' for financials. More significantly, the current high valuation multiples indicate an absence of a margin of safety, resulting in an overall 'Fail' verdict.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.