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.
We have spent our lives looking for businesses that sell an addictive, branded, habitual product with extraordinary pricing power, minimal capital requirements, and regulatory barriers that freeze out new competition. Philip Morris International is close to the platonic ideal of that description, and the numbers in its June 30, 2026 10-Q prove the franchise is not merely intact but accelerating: revenue up 10.4% in the quarter, gross margins expanding, and a smoke-free business — IQOS and ZYN — that now produces over 40% of revenue and is growing double digits. But we have also spent our lives refusing to overpay, and here the arithmetic turns against us. This stock traded near $90 in early 2024. It closed Thursday at $193.
Recent filings analysed: 8-K (2026-09-18), 8-K (2026-09-08), 8-K (2026-09-08), 8-K (2026-08-24).
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