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, that don't eat their own earnings in capital expenditures, and that don't depend on the kindness of foreign governments. Freeport-McMoRan fails all three tests — not because it is badly run (it is currently run quite well), but because of what it is: a price-taking, capital-devouring commodity producer whose crown jewel sits on a mountain in Papua, Indonesia, where our economic interest is contractually scheduled to shrink. The copper story is genuinely exciting, the assets are genuinely scarce, and the stock has nearly doubled off its 52-week low of $35.15 to trade near its all-time high. That is precisely when commodity producers look most like wonderful businesses and are most dangerous to own. At roughly 29x trailing earnings with copper at $6.56 per pound — up 47% in a year, inflated partly by U.S.
Recent filings analysed: 8-K (2026-09-08), 10-Q (2026-08-06), 8-K (2026-07-23), 8-K (2026-06-10).
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