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 are two old men who have spent their lives buying businesses, not stocks, and what the market has served up here is one of the more interesting propositions we've seen in this cycle: the world's premier technology consulting franchise, a business that has earned north of 20% on invested capital every single year for a quarter century without a dime of net debt, offered at roughly ten times earnings and a nearly 5% dividend yield — because the market has decided artificial intelligence will eat it. The stock opened 2026 near $259 and now trades at $136, a decline of about half. Nothing in the reported numbers justifies that: revenue is growing, earnings per share are up 9%, margins are expanding, and free cash flow is on pace for roughly $11 billion this year. What has collapsed is not the business but the market's confidence in its future.
Recent filings analysed: 8-K (2026-07-10), FWP (2026-07-08), 8-K (2026-06-23), 10-Q (2026-06-18).
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