Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Warren here, with Charlie's ghost at my shoulder keeping me honest. Veralto is what happens when a great industrial compounder — Danaher — carves off its water and product-identification businesses and hands them to people trained in the same church. What you get is a collection of dominant niche franchises (Hach, Trojan, ChemTreat, Videojet, Esko, X-Rite/Pantone) that sell small-ticket, mission-critical, frequently regulation-mandated products with roughly 62% recurring revenue, gross margins north of 60%, and almost no tangible capital employed. This is a genuinely wonderful business — a minority designation we hand out sparingly. The stock closed at $95.19 on July 29, 2026, the day after a second quarter in which sales grew 7.6%, adjusted EPS grew 19.4%, and management raised full-year guidance.
Recent filings analysed: 10-Q (2026-07-29), 8-K (2026-07-28), 8-K (2026-06-01), FWP (2026-05-27).
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