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 two things: a business with a durable moat, and managers we would trust with our own checkbook. Shopify, we must admit, has come closer to clearing both hurdles than most of the software companies paraded before us over the past decade. It is a tollbooth on entrepreneurial commerce, it is founder-run, it requires almost no capital to grow, and it has finally — after years of promises — become genuinely and substantially profitable. And yet we are not buyers today. At roughly 78 times trailing free cash flow and nearly 14 times revenue, the market has taken a wonderful business and priced in the better part of a decade of flawless execution. Charlie's old line applies: the trouble with a great company at a silly price is that you've already paid for the greatness, and now you need the silliness to persist too.
Recent filings analysed: 10-Q (2026-08-05), 8-K (2026-08-05), 8-K (2026-07-02), 8-K (2026-06-16).
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