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 voice of Warren Buffett and Charlie Munger. Primary sources: Form 10-Q for the quarter ended June 30, 2026; Q2 2026 earnings release and call; competitor filings; current market data. This is a business we can explain to anyone in two minutes, which is exactly how we like it. O'Reilly sells automotive aftermarket parts — brakes, batteries, alternators, filters, fluids, wipers — through 6,695 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada, supported by a dense network of distribution centers. It serves two customers from the same counter: the do-it-yourself (DIY) weekend mechanic and the professional service provider ("do-it-for-me") repair shop. In the second quarter of 2026, DIY produced $2.34 billion of sales and the professional side $2.47 billion — the professional business, growing 12.5% year over year, has now overtaken DIY in size.
Recent filings analysed: 8-K (2026-08-14), 8-K (2026-08-11), FWP (2026-08-10), 10-Q (2026-08-07).
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