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.
We have watched Baxter for the better part of four decades, and the story of the last ten years is a case study in how a decent, essential business can be ground down by bad capital allocation. The company sells products hospitals cannot function without — IV bags, infusion pumps, hospital beds — and yet shareholders have almost nothing to show for a decade of ownership. The stock traded near $50 ten years ago and $89 at its 2021 peak; today it sits at $26.81, and that is after a 17% one-day surge on the July 30 earnings report.
Recent filings analysed: 8-K (2026-08-04), 8-K (2026-08-04), 8-K (2026-07-30), 10-Q (2026-07-30).
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