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.
Written in the voice and applying the principles of Warren Buffett and Charlie Munger. Based on the Form 10-Q for the quarter ended July 4, 2026, the July 28, 2026 earnings release and call, and current market data. Textron is the original American conglomerate — Royal Little more or less invented the form here in Providence, Rhode Island, back when Charlie and I were young men. Seventy years later, the company is still a collection of decent-to-mediocre businesses stapled together, and the market has priced it accordingly for most of those seventy years. The stock fell roughly 7.6% on July 28 after second-quarter earnings, and now sits near $90.40, about 13.9 times the midpoint of management's own adjusted earnings guidance. That looks cheap. It usually does. That's the trap.
Recent filings analysed: 8-K (2026-07-28), 10-Q (2026-07-28), 8-K (2026-05-01), 8-K (2026-04-30).
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