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 distinguishing between good companies and good businesses, and PulteGroup forces exactly that distinction. This is one of the best-managed large homebuilders in America — arguably the best-managed among the volume builders — with an industry-leading 25% gross margin, a balance sheet Fort Knox would envy, and a management team that has retired more than half the share count over the past decade at sensible prices. We tip our hats to Ryan Marshall and his team without reservation. And yet. Homebuilding is a business where the product is a commodity, the raw material (land) must be repurchased forever at market prices, the customer's ability to buy depends on an interest rate nobody controls, and today the company must hand back 10.4% of the purchase price in incentives just to move the merchandise.
Recent filings analysed: 8-K (2026-07-22), 10-Q (2026-07-22), 8-K (2026-05-01), 8-K (2026-04-23).
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