# The Ferguson Water Thesis with Todd Wenning

Page: https://stenobird.com/podcast/preferred-shares-podcast-6594967/the-ferguson-water-thesis-with-todd-wenning
Text version: https://stenobird.com/podcast/preferred-shares-podcast-6594967/the-ferguson-water-thesis-with-todd-wenning.md
Podcast: [Preferred Shares Podcast](https://stenobird.com/podcast/preferred-shares-podcast-6594967)
Published: 2026-04-16T23:04:31+00:00
Episode link: https://www.preferredsharespodcast.com/p/the-ferguson-water-thesis-with-todd
Audio file: https://api.substack.com/feed/podcast/192131377/49dd3c8a7cc8b54acc9a977cab6dbe93.mp3
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JSON: https://stenobird.com/v1/public/podcasts/preferred-shares-podcast-6594967/episodes/the-ferguson-water-thesis-with-todd-wenning
Duration seconds: 2705

## Resource

Welcome to Episode 32 of the Preferred Shares Podcast. In this episode, we explore the water thesis behind Ferguson Enterprises , a leading distributor of HVAC and plumbing solutions. To help walk us through the intricacies of the thesis, we are joined by Todd Wenning. Todd is a prior contributor at The Motley Fool, previously covered companies on the sell-side for Morningstar and the buy-side for Johnson Investment Counsel and Ensemble Capital Management. He’s a busy guy! He runs KNA Capital Management, LLC , an Ohio-registered investment advisor, and is the founder and editor of the newsletter Flyover Stocks . He is also currently teaching Portfolio Management at the University of Dayton. In This Episode The history of Ferguson — Its founding and early focus. The water thesis — Why now is the right time. The distributor model — How Ferguson’s position in the value chain makes it a prime beneficiary of the water thesis. Full scope — The expansive SKU listings, inventory management, and diversified suppliers and customer bases that work with Ferguson. The market — A look at market share and how competition has evolved. Capital Allocation — How Ferguson redeploys capital across organic investments, bolt-on acquisitions, and capital returns to shareholders. Reciprocity — How the HVAC and water sides of the business assist one another, creating a system greater than the sum of its parts. Management — Exploring compensation, alignment, and horizon. Risks — What could go wrong. Closing Thoughts — The key things to focus on, and, taking the other side to the risks, what could go ‘more right.’ Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: Douglas Ott ( Andvari Associates and @yesand…

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## Transcript

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