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 spent our lives looking for businesses that can raise prices without losing customers, that get stronger as they get bigger in ways competitors cannot copy, and that don't hand back a decade of profits every time the economy sneezes. D.R. Horton is the best-run company in an industry that offers none of those things. It is America's largest homebuilder, run by honest and genuinely skilled people who allocate capital about as well as anyone in the business. And yet the product is a commodity, the customer has no loyalty, the company is today cutting prices and paying billions in mortgage-rate buydowns to move inventory, and earnings are down roughly 35% from their fiscal 2022 peak through no fault of management whatsoever. That last fact tells you who is really in charge here: the Federal Reserve and the mortgage market, not the folks in Arlington, Texas.
Recent filings analysed: 10-Q (2026-07-23), 8-K (2026-07-21), 8-K (2026-05-12), 10-Q (2026-04-23).
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