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.
Rating: ★★☆☆☆ (2 — Sell) Charlie and I have spent considerable time studying JD.com — China's second-largest e-commerce company by revenue, a business that moves $187 billion worth of goods annually through a self-built logistics network spanning the entire People's Republic. At first glance, the numbers are seductive: the stock trades at 8.5x trailing earnings and roughly 0.22x sales, the balance sheet holds $18 billion more cash than debt, and management is returning capital at nearly 10% of market capitalization per year through buybacks and dividends. One might think we have stumbled upon a wonderful business at a distressed price. We have not.
Recent filings analysed: 20-F (2025-04-17).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation