Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We've spent a good deal of time on this one, because it sits right on the line that matters most to us: the line between a very good business and a truly wonderful one. Dexcom is half of a global duopoly selling a disposable medical product that diabetics reorder every ten to fifteen days for the rest of their lives. The economics are lovely — 64% gross margins, returns on invested capital north of 30%, a net-cash balance sheet, and a decade of 25% compounded revenue growth. The runway is genuinely long: most of the world's half-billion diabetics still prick their fingers. But we must be honest about three things. First, the moat, while real, is contested by Abbott — a larger, better-financed competitor with a structural cost advantage and a stated ambition to double its Libre franchise.
Recent filings analysed: 8-K (2026-07-30), 10-Q (2026-07-30), 8-K (2026-05-28), 8-K (2026-05-15).
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