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 of Warren Buffett and Charlie Munger, based on the Q2 2026 Form 10-Q (period ended June 30, 2026), the July 28, 2026 earnings release and call, and market data as of August 7, 2026. We have watched UPS for fifty years, and for most of that time it was one of the finest transportation franchises in America — a company we would have been proud to own at the right price. What we see today is something different: a formerly wonderful business that has descended into the ranks of the average, carrying a cost structure it cannot fully control, competing against its own former largest customer, paying out essentially every dollar of free cash flow as a dividend it dare not cut, and running a perpetual restructuring program that has become a way of life rather than an event.
Recent filings analysed: 10-Q (2026-08-05), 8-K (2026-07-28), 8-K (2026-06-15), 8-K (2026-05-13).
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