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.
Warren here, with Charlie looking over my shoulder as always. We have spent a good deal of time with MGM's June 30, 2026 10-Q, its recent earnings history, and the events swirling around the company this summer — including Barry Diller's People Inc. bid of $48.30 per share for the roughly three-quarters of the company it doesn't already own. Our conclusion is straightforward: MGM is an average business wearing the costume of a cheap stock. Management has done genuinely intelligent things with capital — the share count has been nearly cut in half since 2021 — but the underlying enterprise is cyclical, capital-hungry, and carries a mountain of fixed obligations in the form of triple-net lease commitments totaling $52 billion in undiscounted future payments.
Recent filings analysed: 10-Q (2026-07-29), 8-K (2026-07-29), 8-K (2026-05-14), 8-K (2026-05-08).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation