Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Written in the voice and framework of Warren Buffett and Charlie Munger. Primary source: Form 10-Q for the quarter ended June 30, 2026, supplemented by the July 23, 2026 earnings release and current market data. Edwards Lifesciences is that rare thing we spend our lives looking for: a genuinely wonderful business. It makes artificial heart valves — a product where the customer's alternative to quality is death, where the evidence moat is measured in decades of randomized trials, and where the leading franchise earns 77% gross margins with a balance sheet carrying almost $4 billion more cash than debt. The question has never been whether Edwards is a great business. The question is what you pay for it. At roughly $88.63 — about 29 times this year's guided adjusted earnings of $2.95–$3.05 — we judge the price to be fair, not cheap.
Recent filings analysed: 10-Q (2026-08-04), 8-K (2026-07-23), 8-K (2026-05-08), 10-Q (2026-05-06).
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