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.
Warren here, with Charlie chiming in throughout. We've spent the week with Builders FirstSource's just-filed 10-Q for the quarter ended June 30, 2026, its recent earnings calls, and the company's history going back through the BMC merger and the ProBuild acquisition. The stock has been cut in half over the past year — from a 52-week high above $151 to about $69 today — and whenever a large, well-known company loses half its market value, we're obliged to look. Sometimes the market hands you a wonderful business at a foolish price. And sometimes the market is simply repricing a cyclical, leveraged, commodity-adjacent business for what it actually is. Our conclusion, which we'll defend below, is that this is mostly the second case — with some genuine business quality mixed in that keeps it from being a one-star affair.
Recent filings analysed: 8-K (2026-08-07), 8-K (2026-07-30), 10-Q (2026-07-30), 8-K (2026-06-05).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation