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 looked hard at CDW because it is exactly the kind of company that tempts value investors after a bad week: a well-run, scale-advantaged market leader whose stock just sold off double digits on an earnings report that actually beat expectations. The shares closed August 6 at $141.97, down from roughly $148 a week earlier and well below the 52-week high of $171.55, after the Q2 report on August 5 spooked the market with gross margin compression and negative free cash flow. But cheapness is not the question. The question is whether this is a wonderful business, and our honest answer is no. CDW is a superbly executed average business — a middleman in IT hardware and software distribution with a narrow scale moat, no real pricing power, cyclical demand, and $5.8 billion of debt sitting on $2.4 billion of equity.
Recent filings analysed: 8-K (2026-08-05), 8-K (2026-08-05), 10-Q (2026-08-05), 8-K (2026-05-26).
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