Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Written in the voice and framework of Warren Buffett and Charlie Munger, from public filings (Q2 2026 Form 10-Q, filed for the period ended June 30, 2026), earnings calls, and current market data. All conclusions are our own. AbbVie is one of the best-executed pharmaceutical companies we have ever studied, and we want to say that plainly before we say anything critical. Management guided this company through the largest patent expiration in the history of the industry — Humira, a $21 billion drug — and two years later posted record revenue. That is roughly equivalent to rebuilding a railroad while the trains are running. And yet, after working through the numbers, we arrive at two stars. Not because AbbVie is badly run — it is superbly run — but because the business itself does not meet our definition of wonderful. Its moat is real but has an expiration date printed on it.
Recent filings analysed: 8-K (2026-09-03), 8-K (2026-08-18), FWP (2026-08-05), 8-K (2026-08-05).
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