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.
Fastenal is one of the finest businesses in America. We want to say that plainly at the outset, because everything else in this report has to be read against it. This is a company that took the least glamorous product imaginable — the threaded fastener, a nut and a bolt — and built a distribution and service machine that earns returns on equity above 30%, carries essentially no debt, and has compounded shareholder wealth for nearly four decades since its 1987 IPO at a rate that would make most technology companies blush. The just-filed 10-Q for the quarter ended June 30, 2026 shows a business firing on all cylinders: sales up 14.7%, operating margin steady at 21.0%, net income up 15.9%, and June sales accelerating to 20.5% growth.
Recent filings analysed: 10-Q (2026-07-16), 8-K/A (2026-07-16), 8-K (2026-07-14), 8-K (2026-06-23).
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