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 wonderful businesses at fair prices, and we have learned — often expensively — to distinguish a genuinely wonderful business from a good business dressed up by skillful promotion and serial acquisition. Ingersoll Rand is the latter. It owns a genuinely decent franchise in industrial air compressors with a real aftermarket annuity attached, and it is run by an energetic, operationally capable CEO. But when we strip away the adjusted numbers and look at what the business actually earns on all the capital entrusted to it, we find a company earning roughly 9% on equity, growing organically at low single digits, whose growth engine is a perpetual acquisition treadmill — and whose largest recent acquisition was written down by roughly $300 million within twelve months of closing.
Recent filings analysed: 10-Q (2026-07-31), 8-K (2026-07-30), 8-K (2026-06-16), 10-Q (2026-04-29).
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