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 spent our whole lives looking for businesses that take a dollar, earn a high return on it without needing the dollar back, and can do so for decades against weak competition. United Airlines is close to the photographic negative of that description. It is a well-run company — genuinely better run than at any point in its history — operating in a business that consumes capital voraciously, prices its product like a commodity, shares its upside with organized labor and OPEC, and hands its downside to shareholders with leverage attached. The first half of 2026 makes the case better than we could. United grew revenue 16%, executed superbly, recaptured fuel costs faster than almost anyone in the industry — and still saw operating income fall 17% because jet fuel went from $2.34 to $4.19 a gallon on account of a war it had nothing to do with.
Recent filings analysed: 10-Q (2026-07-16), 8-K (2026-07-15), 8-K (2026-05-22), 8-K (2026-04-27).
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