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.
Authors: Warren Buffett & Charlie Munger Chevron is a large, well-run integrated oil and gas company with some of the better long-life resource positions in the industry — the Permian, Tengizchevroil, and now Stabroek (Guyana) via the Hess acquisition. Mike Wirth runs a disciplined capital program, the dividend has been raised for 38 consecutive years, and the balance sheet is reasonable. None of that makes it a wonderful business in the Munger sense. At its core, Chevron sells two undifferentiated molecules — hydrocarbons and refined products — into a global commodity market over which it has zero pricing power. Its profitability oscillates with the price of crude. Q1 2026 illustrates the point: revenue grew 2 percent year-over-year, yet earnings fell 37 percent and operating cash flow nearly halved, because realizations and downstream margins moved against the company.
Recent filings analysed: 10-Q (2026-08-06), 8-K (2026-07-31), 8-K (2026-05-29), 8-K (2026-05-29).
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