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 Citigroup for the better part of six decades, and for most of that time it has been a machine for converting shareholder capital into lessons. Jane Fraser is now four and a half years into the most credible restructuring this company has attempted in our lifetimes, and the second quarter of 2026 was, by any honest accounting, excellent: net income of $5.8 billion, up 45%; earnings per share of $3.15, up 61%; a 13.0% return on tangible common equity; and the best quarterly revenue in a decade. The stock has responded, roughly doubling off its 52-week low of $87.94 to a recent 17-year high before settling back to $133.82. And yet our rating is two stars. Here is the nub of it: business quality is the primary axis of our system, and Citigroup — even a well-run Citigroup — is an average business.
Recent filings analysed: 10-Q (2026-08-06), 8-K (2026-07-14), 8-K (2026-05-21), 10-Q (2026-05-07).
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