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 have looked hard at Solventum, the healthcare business 3M spun off in April 2024, and we will give you our conclusion up front: this is an average business undergoing perpetual surgery, priced as if the surgery is guaranteed to succeed. It owns a handful of genuinely good franchises — negative-pressure wound therapy, sterilization assurance consumables, and a hospital coding software business with real switching costs — buried inside a low-growth conglomerate that carries meaningful debt, an uncapped product-liability indemnity owed to its former parent, a dental unit fighting a stagnant market, and a restructuring bill that never seems to end. Management is capable and the activist-driven breakup plan is rational.
Recent filings analysed: 8-K (2026-08-05), 8-K (2026-08-05), 10-Q (2026-08-05), 8-K (2026-07-20).
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