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.
Written in the first person, as we would talk it through in Omaha. We have watched Zoetis from a distance since Pfizer set it loose in 2013, and for most of that time it was exactly the kind of business we admire and exactly the kind of price we refuse to pay. The market solved half of that problem for us this year. The stock has fallen from above $165 to $77 — including a 21.5% single-day collapse on May 7, 2026 — and the question before us is the oldest one in our business: is this a wonderful company having a bad year, or a good company that was priced as a wonderful one and is now being found out? Our answer, after working through the 10-Q for the quarter ended June 30, 2026 and the events since: it is a very good business — better than most of what trades on the exchange — taking its first genuine punch to the moat, offered at a price that compensates us for the uncertainty.
Recent filings analysed: 10-Q (2026-08-06), 8-K (2026-08-06), 8-K (2026-05-22), 8-K (2026-05-20).
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