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 owned businesses for a combined century between the two of us, and we have learned that the market's mood swings faster than any business's underlying economics ever do. Adobe is a textbook case in front of us right now. A year ago this stock traded above $370. Today it sits near $291, down roughly 40 percent from its high, while the underlying business has done nothing but grow faster, generate more cash, and expand its already extraordinary margins. That gap between price and performance is either the market seeing something real that we're missing, or it is Mr. Market having one of his depressive episodes. Our job is to figure out which. We are also walking into this one at an unusually turbulent moment for the company itself. The chief executive who has run Adobe for eighteen years is stepping down.
Recent filings analysed: 8-K (2026-07-17), 10-Q (2026-06-15), 8-K (2026-06-11), 8-K (2026-04-21).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation