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.
Independent Research Memorandum We have spent a long career learning one lesson the hard way: a great management record, when it collides with a business of poor underlying economics, leaves the reputation of the business intact. General-merchandise retail is one of the toughest businesses we know. We approach Target the way we would approach any retailer that does not own a structural cost advantage or a membership lock — with a great deal of skepticism, and our hand on our wallet. The shares have run up roughly 24% in three months on the back of a genuinely good first quarter. That is precisely the kind of moment when a value investor must be most careful, because a single strong quarter after a year of pain looks like a turnaround and feels like vindication. We have separated the noise of one quarter from the signal of a decade, and what the decade tells us is sobering.
Recent filings analysed: 8-K (2026-07-22), 8-K (2026-06-12), 10-Q (2026-05-29), 8-K (2026-05-20).
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