Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our lives saying that insurance is a business where the product is a promise, the inventory is invisible, and the cost of goods sold isn't known for years — sometimes decades. Most companies in this industry are average or worse, because the temptation to write bad business at inadequate prices when capital is abundant is nearly irresistible. The rare insurer that says "no" when the market is foolish, and swings hard when the market is fearful, is a genuinely wonderful business. After going through Arch Capital's second-quarter 2026 Form 10-Q line by line, its earnings call, and twenty-four years of evidence, we believe Arch belongs in that small club. The numbers tell the story.
Recent filings analysed: 10-Q (2026-08-04), 8-K (2026-07-28), 8-K (2026-06-16), 8-K (2026-06-09).
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