Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Charlie and I have admired PACCAR for decades, and we'll say up front what we conclude at the end: this is one of the finest industrial companies in America — a disciplined, owner-minded, 87-years-consecutively-profitable manufacturer with the best margins in its industry and a parts annuity that gets more valuable every year. It is the kind of business we'd be delighted to own forever at the right price. But the market has noticed. The stock sits at an all-time high, at roughly 29 times trailing earnings and about 20-21 times our estimate of mid-cycle earning power, against a historical range of 12-17 times. The current enthusiasm rests substantially on a 2027 emissions pre-buy — a cyclical sugar high that borrows demand from 2028. A wonderful business at a premium price is a hold, not a buy. Three stars.
Recent filings analysed: 10-Q (2026-07-29), 8-K (2026-07-28), 8-K (2026-05-01), 10-Q (2026-04-29).
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