Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Charlie and I have spent our lives looking for businesses that sell a small-ticket, repeat-purchase product to an emotionally committed customer, through a distribution system competitors cannot easily replicate, with pricing power that compounds quietly year after year. IDEXX Laboratories is one of the better examples we have seen in the healthcare world — and it happens to serve patients who never sue their doctors, carry no insurance bureaucracy worth mentioning, and are paid for by owners who consider them family members. This is a wonderful business: roughly 45% share of global veterinary diagnostics, a razor-and-blade model where about 80% of revenue is recurring, returns on invested capital north of 40%, and $5.3 billion of contractually committed future customer purchases sitting on the books.
Recent filings analysed: 8-K (2026-08-04), 10-Q (2026-08-04), 8-K (2026-05-15), 8-K (2026-05-05).
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