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.
Written in the voice of Warren Buffett and Charlie Munger, from primary sources: the Q2 2026 Form 10-Q (period ended June 30, 2026), recent earnings disclosures, and current market data. We'll save you the suspense. Phillips 66 is a well-managed collection of average businesses enjoying the best refining margins in years, and the stock — near its all-time high after roughly a 70% run off its 52-week low of $118 — is priced as though those margins are the new normal. They are not. Refining is a cyclical, capital-hungry, commodity-processing business with no ability to set prices, and buying a cyclical at peak margins and a peak multiple is one of the oldest ways to lose money respectably.
Recent filings analysed: 8-K (2026-08-05), 10-Q (2026-08-05), 8-K (2026-05-14), 8-K (2026-04-29).
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