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.
We spent a good deal of time with SailPoint's registration statement, its fiscal 2026 10-K, the last several quarterly reports, and the March and June 2026 earnings calls. Here is where we come out: SailPoint is a good business — genuinely sticky software solving a real and growing problem, run by an honest founder who has been at this for twenty years. But it is not a wonderful business by our definition, and at roughly $9.6 billion for a company that has never earned a GAAP dollar in two decades of operation, is 86%-controlled by a private equity sponsor working toward the exit, and competes with Microsoft giving away a "good enough" version of its product, we would not put a nickel of our own capital here. Charlie's old rule applies: when a business must run hard for ten years just to justify today's price, you have no margin of safety — you have a hope. We rate it two stars.
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation