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.
Warren here, with Charlie's ghost at my shoulder keeping me honest. Royal Caribbean is, without question, the best-run company in the cruise industry. Jason Liberty and his team have executed a post-pandemic recovery that deserves genuine admiration: record yields, record customer deposits of $6.7 billion, a restored investment-grade balance sheet, a reinstated and growing dividend, and full-year 2026 guidance just raised to $17.73–$17.87 in adjusted EPS. The stock has rewarded shareholders handsomely. And yet we are giving it two stars. Here is the uncomfortable arithmetic: this is a business that carries $23.4 billion of debt, has committed to another $16.5 billion of ships on order, must pour billions into steel every single year merely to stay competitive, and — as 2020 proved beyond any doubt — can see its revenue go to literally zero through no fault of its own.
Recent filings analysed: 8-K (2026-08-20), 8-K (2026-08-07), FWP (2026-08-06), 8-K (2026-07-28).
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