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.
Written in the first person by Warren Buffett, with commentary from Charlie Munger, based on McKesson's Form 10-Q for the quarter ended June 30, 2026, the fiscal 2026 Form 10-K, recent earnings releases, and current market data. Charlie and I have always said we like businesses we can explain to a smart twelve-year-old in five minutes. McKesson passes that test, though the twelve-year-old will need to sit still for the whole five minutes, because the numbers involved are enormous and the margins are microscopic. McKesson is the largest pharmaceutical distributor in North America. It buys drugs from manufacturers by the truckload, warehouses them, and delivers them daily to pharmacies, hospitals, and physician practices. For this it earns a sliver — gross margin was 3.5% of revenue last quarter ($3.7 billion of gross profit on $105.4 billion of revenue).
Recent filings analysed: 8-K (2026-08-05), 10-Q (2026-08-05), 8-K (2026-07-24), 8-K (2026-07-01).
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