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 — the kind with durable pricing power, honest and able management, and economics that compound quietly for decades. Molina Healthcare is not one of them. It is a competently run middleman in a business where the customer is a monopsonist government, the price is set by state actuaries, the margins are contractually capped, and the last eighteen months have demonstrated — at a cost of roughly three-quarters of the company's earnings power — exactly what happens when the rate-setter falls behind the cost curve. The stock has been cut nearly in half from its highs, and on management's telling, normalized earnings power several years out could make today's price look cheap. But we learned long ago that a fair business at a cheap price is still a fair business.
Recent filings analysed: 10-Q (2026-07-23), 8-K (2026-07-22), 8-K (2026-06-10), 8-K (2026-05-11).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation