Bill Gunderson's Radio Play of the Day: Watsco

NEW YORK ( TheStreet) -- Sometimes the best stocks are found in the simplest of industries.

While the Facebook ( FB) IPO had sex appeal, and we anxiously await the upcoming Twitter offering, basic companies that provide basic services are delivering outsized returns to investors.

An example is Watsco ( WSO), which I featured on my radio show Monday.

I have written many times about the rebound in housing -- it's happening right now. I'm not a "Johnny come lately" to this booming sector. I started investing in housing during the summer of 2012 after I interviewed a well-known homebuilding CEO from the Southern California area on my radio show.

I was shocked to hear him declare emphatically: "Yes, this recovery is for real." He went on to say: "In fact, in many markets there is a shortage of skilled labor!" I could not believe my ears.

But, then again, fueled by 100-year-low interest rates, I was seeing the charts of a wide range of building-related stocks begin to take off. I wrote about Home Depot ( HD) in August, when I added it to my conservative growth model portfolio. The stock is up about 25% since then.

I wrote another article in October about how the building sector was hotter than any other. I singled out housing mutual funds, exchange traded funds and individual stocks I liked at the time.

At the time, I wrote about Minnesota-based Toro ( TTC). I still own Toro in my aggressive growth model portfolio as the stock continues to hit new highs. It's up almost 25% since I bought it.

In November, everyone was clamoring about how cheap Apple ( AAPL) was. The problem was that Apple lacked the other two characteristics I require: performance and a healthy stock chart. Instead, I wrote about another housing-related stock called Ocwen Financial ( OCN) because it met all three criteria.

Ocwen is up over 60% since becoming a member of my aggressive growth model portfolio. I currently own 26 stocks in the portfolio, which is up 11% this year, after fees and expenses, as of last Friday.

Today I'm going to focus on Watsco.

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