Munger Mode rating: 1 out of 5 — Strong 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 buying businesses that make money. Recursion is a business that spends money — roughly $131 million of net loss in the most recent quarter against $7.7 million of revenue — on the promise that software will someday industrialize drug discovery. The promise may even come true. But a promise is not a moat, a supercomputer is not a franchise, and a company that has accumulated $2.3 billion in deficits, grown its share count 35% in eighteen months, watched its founder-CEO depart, cancelled most of its first generation of clinical programs, and open-sourced its most celebrated software has not yet demonstrated a single durable competitive advantage in the only arena that matters: getting approved drugs to market economically. This belongs in the "too hard" pile for any investor, and for those who insist on a rating anyway, the framework is unambiguous.
Recent filings analysed: 10-Q (2026-08-05), 8-K (2026-08-05), 8-K (2026-06-18), 10-K (2026-02-25).
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