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 control their own destiny — businesses that can raise prices without a committee's permission, that keep customers without bribing them, and whose earnings ten years out we can estimate within a reasonable band. Humana fails all three tests, and it fails them not because management is foolish but because the business is structurally at the mercy of a single customer: the United States government. The proof is arithmetic, not opinion. Humana earned $26.09 per share (adjusted) in 2023. This year, management guides to "at least $9.00." Nothing about the company's competence collapsed in those three years.
Recent filings analysed: 8-K (2026-07-29), 8-K (2026-07-29), 10-Q (2026-07-29), 8-K (2026-06-01).
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