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 looking for toll bridges, and Booking Holdings is one of the better ones the internet ever built. It sits between roughly 1.2 billion annual room nights of traveler demand and millions of mostly small, fragmented lodging suppliers who cannot efficiently find those travelers on their own. It collects roughly 14–15 cents on every dollar that crosses the bridge, requires almost no capital to operate, runs on other people's money (a $10.1 billion float of traveler prepayments), and converts about a third of revenue into free cash flow. Management returns essentially all of that cash to owners and has shrunk the share count by more than 5% in the past year alone — at prices below today's. At $207, the market asks about 20 times forward earnings and hands us a 6% free cash flow yield growing at a high-single-digit organic rate.
Recent filings analysed: 8-K (2026-08-04), 10-Q (2026-08-04), 8-K (2026-06-02), 8-K (2026-05-07).
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