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.
We have looked at Gilead many times over the years, and the story has always been the same argument between the two of us. Warren sees a royalty on human immunodeficiency virus — a franchise with 85%-plus gross margins, dominant share, and customers who take the product every day for the rest of their lives. Charlie sees a wasting asset with a countdown clock stapled to every patent, run by people who have burned roughly $25 billion trying to buy their way into oncology with, so far, little to show for it. Both of us are right, which is why this lands at three stars. The HIV franchise is genuinely wonderful — one of the better pharmaceutical moats we have ever examined, now extended to 2036 and beyond by the lenacapavir chemistry.
Recent filings analysed: 10-Q (2026-08-06), 8-K (2026-08-04), 8-K (2026-05-20), 8-K (2026-05-07).
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