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.
Written in the voice of Warren Buffett and Charlie Munger, based on the FY2026 10-K (fiscal year ended May 31, 2026), recent earnings releases, and current market data. We have watched FedEx for fifty years, admired its founder enormously, and used its services constantly. Admiration for a company and a desire to own it are two different things. FedEx is a competent operator of an extraordinarily hard business: capital-hungry, unionized in its cockpits, cyclical, fuel-exposed, and squeezed on one side by a rational duopoly partner (UPS) and on the other by the largest customer-turned-competitor in business history (Amazon). Returns on invested capital have hovered barely above the cost of that capital for a decade. Operating margins have structurally declined, not improved, over ten years despite tens of billions in reinvestment.
Recent filings analysed: 8-K (2026-07-24), 8-K (2026-07-21), 10-K (2026-07-20), 8-K (2026-07-10).
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