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 by the principles of Warren Buffett and Charlie Munger. Primary sources: Valero's Form 10-Q for the quarter ended June 30, 2026, the Q2 2026 earnings call, and current market data as of late July 2026. Warren: Let's not bury the lead. Valero is the finest operator in a business we have never much wanted to own. The second quarter of 2026 was the best in the company's history — $3.7 billion of net income, $12.62 per share, in ninety days. Management is capable, honest, and allocates capital about as well as anyone in corporate America. And yet we arrive at two stars, because the tollbooth Valero operates sits on a road where somebody else sets the toll. A refiner is a price-taker on the crude oil it buys and a price-taker on the gasoline and diesel it sells.
Recent filings analysed: 8-K (2026-07-30), 10-Q (2026-07-30), 8-K (2026-07-16), 8-K (2026-05-08).
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