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 earn high returns on capital, sell something the customer cannot easily do without, and are run by people we'd trust with our wallets. RTX gets closer to that ideal than most of the S&P 500 — but it arrives at our door the day after a blowout quarter, priced at roughly 29 times this year's earnings and a 3% free cash flow yield, with the market fully awake to the defense supercycle story. The franchise is real. Pratt & Whitney's geared turbofan (GTF) installed base is a decades-long annuity in the making; Collins Aerospace holds oligopoly positions across the aircraft; Raytheon just booked nearly $20 billion in a single quarter as NATO members race toward 5% of GDP defense spending.
Recent filings analysed: 8-K (2026-07-23), 10-Q (2026-07-23), 8-K (2026-05-04), 10-Q (2026-04-21).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation