Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Warren here, with Charlie looking over my shoulder. Amphenol is one of the finest industrial businesses we have ever studied — a 90-year-old connector company that has quietly compounded into a $23-billion-revenue colossus through a decentralized culture, genuine switching costs, and the best acquisition machine in the industrial world. The numbers coming out of this company right now are staggering: Q2 2026 sales of $8.76 billion, up 55%, with 30% organic growth and a 29.5% GAAP operating margin. The AI datacenter buildout has turned Amphenol's IT datacom franchise into a firehose of cash. And that is precisely the problem. At $160.70 — roughly 40x trailing earnings and about 30x our estimate of 2026 adjusted earnings — the market is capitalizing boom-level earnings at a boom-level multiple.
Recent filings analysed: 8-K (2026-08-06), 10-Q (2026-07-31), 8-K (2026-07-29), 8-K (2026-05-22).
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