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 wonderful businesses, and we have spent nearly as long explaining why the automobile business almost never qualifies. Ford is the case study we would assign. It contains one genuinely good business (Ford Pro), one iconic franchise (F-Series), one acceptable finance operation (Ford Credit), and wrapped around all of it, a capital-devouring, cyclical, unionized, price-taking manufacturing enterprise that just incinerated roughly $40 billion of shareholder wealth on an electric-vehicle strategy it has now largely abandoned. The stock, at $15.28, is not expensive — roughly 10x this year's adjusted earnings power. But an average business at a fair price is not where we put money. Charlie put it simply: the auto business is a bad business, and no management, however energetic, has repealed that.
Recent filings analysed: 10-Q (2026-07-29), 8-K (2026-07-28), 8-K (2026-07-02), 8-K (2026-05-21).
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