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Tag: Munger Rubric

  • Meta Platforms (META) Stock Analysis 2026: Is it a Buy? (Munger Quality Rubric)

    Meta Platforms (META) Stock Analysis 2026: Is it a Buy? (Munger Quality Rubric)

    View All Stock Evaluations | Evaluation Date: 2026-01-13

    Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. The author may hold positions in securities mentioned. Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.

    Key Takeaways: Is META a Quality Investment?

    Question: Is Meta Platforms (META) a good stock to buy in 2026?

    Answer: According to the Munger Quality Rubric, Meta Platforms (META) is a PASS with a score of 76.7% (161/210), driven by exceptional financial strength (89%), dominant advertising moat (86%), and strong ROIC of 28%, despite governance concerns from Zuckerberg’s 61% voting control.

    Munger Quality Score: 161/210 (76.7%) – PASS

    • Top Strength: Financial Strength (89%) — Debt/EBITDA 0.48x, $65B+ cash, Aa3 credit rating, 28% ROIC
    • Key Concern: Regulatory Risk (60%) — Ongoing EU DMA/GDPR challenges with €1.5B+ cumulative fines
    • Valuation: 29x P/E vs 26x 5-year average — Fair value with slight premium justified by 22% growth
    • Key Risk: Dual-class structure gives Zuckerberg 61% voting control; Reality Labs consumed $73B with uncertain returns

    This evaluation uses the Charlie Munger Quality Rubric framework analyzing management, moat, financials, and valuation across 8 dimensions.

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  • Netflix (NFLX) Stock Analysis: Munger Quality Rubric Evaluation 2026

    Netflix (NFLX) Stock Analysis: Munger Quality Rubric Evaluation 2026

    View All Stock Evaluations | Evaluation Date: 2026-01-12

    Key Takeaways: Is NFLX a Quality Investment?

    This section provides a scannable summary for quick reference.

    • Verdict: PASS — Score: 156/210 (74.3%)
    • Moat Strength: Strong — Global streaming leader with 300M+ subscribers, unmatched content library, and network effects from data-driven personalization
    • Financial Health: Excellent — ROIC 24%+, FCF $9B, Debt/EBITDA ~1.0x, A/A3 credit rating
    • Valuation: Fair to Slightly Overvalued — P/E 37x vs 5yr avg 47x, but pending $72B Warner Bros. acquisition adds uncertainty
    • Key Risk: The proposed Warner Bros. Discovery acquisition could face antitrust challenges and significantly increase leverage

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  • Qualcomm (QCOM) Stock Analysis: Munger Quality Rubric Evaluation 2026

    Qualcomm (QCOM) Stock Analysis: Munger Quality Rubric Evaluation 2026

    View All Stock Evaluations | Evaluation Date: 2026-01-12

    Key Takeaways: Is QCOM a Quality Investment?

    This section provides a scannable summary for quick reference.

    • Verdict: 🟢 PASS — Score: 152/210 (72.4%)
    • Moat Strength: Strong — World-leading 5G patent portfolio with high-margin licensing revenue; testing requirements create massive barriers to entry
    • Financial Health: Excellent — Debt/EBITDA 0.86x, ROIC 26%, $12.8B FCF, $13.3B cash reserves
    • Valuation: Fair to Slightly Overvalued — P/E 34x vs 5yr avg 18x; Forward P/E 14x more reasonable
    • Key Risk: 46-64% revenue exposure to China and impending loss of Apple modem business by 2027

    This evaluation uses the Charlie Munger Quality Rubric framework analyzing management, moat, financials, and valuation across 8 dimensions.

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  • Tesla (TSLA) Munger Quality Rubric: FAIL at 48% – Extreme Valuation

    Tesla (TSLA) Munger Quality Rubric: FAIL at 48% – Extreme Valuation

    View All Stock Evaluations | Evaluation Date: 2026-01-12

    Key Takeaways: Is TSLA a Quality Investment?

    This section provides a scannable summary for quick reference.

    • Verdict: ❌ FAIL — Score: 101/210 (48.1%)
    • Moat Strength: Weakening — Brand eroding as BYD overtakes in global EV sales; market share declining
    • Financial Health: Good — Zero net debt, $36B cash, but declining margins and ROIC
    • Valuation: Significantly Overvalued — P/E 297x, EV/EBITDA 86x, 12x Graham Number
    • Key Risk: CEO distraction and reputational damage affecting brand, combined with extreme valuation

    This evaluation uses the Charlie Munger Quality Rubric framework analyzing management, moat, financials, and valuation across 8 dimensions.

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  • Intuitive Surgical (ISRG) Stock Analysis: Munger Quality Rubric Evaluation 2026

    Intuitive Surgical (ISRG) Stock Analysis: Munger Quality Rubric Evaluation 2026

    View All Stock Evaluations | Evaluation Date: 2026-01-12

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  • Microsoft Corporation (MSFT) – Munger Quality Rubric Stock Evaluation

    Microsoft Corporation (MSFT) – Munger Quality Rubric Stock Evaluation

    View All Stock Evaluations | Evaluation Date: 2026-01-07

    How This Company Makes Money

    Microsoft generates revenue through three main segments: (1) Intelligent Cloud (Azure cloud services, server products, enterprise services) – the largest and fastest-growing segment at ~35% of revenue; (2) Productivity and Business Processes (Microsoft 365, LinkedIn, Dynamics 365) – providing subscription-based productivity tools; and (3) More Personal Computing (Windows, Xbox gaming, Surface devices, search advertising). The company benefits from sticky enterprise relationships, with over 85% of Fortune 500 companies using Azure and Microsoft 365 creating high switching costs through embedded workflows.

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  • Uber Technologies (UBER) – Munger Quality Rubric Stock Evaluation

    Uber Technologies (UBER) – Munger Quality Rubric Stock Evaluation

    View All Stock Evaluations | Evaluation Date: 2026-01-07

    How This Company Makes Money

    Uber Technologies operates a global platform connecting riders with drivers and consumers with restaurants/merchants. The company generates revenue through commission fees on its mobility (ride-hailing) platform (~57% of revenue), delivery fees from Uber Eats food/grocery delivery (~31% of revenue), and freight brokerage services (~12% of revenue). Uber’s asset-light model means it owns no vehicles but takes a 20-42% cut of every transaction while drivers/couriers earn the remainder.

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  • IREN Stock Analysis: Bitcoin Miner’s AI Pivot Falls Short

    IREN Stock Analysis: Bitcoin Miner’s AI Pivot Falls Short

    View All Stock Evaluations | Evaluation Date: 2026-01-05

    IREN Limited is a vertically integrated data center company that generates revenue through two main channels: Bitcoin mining using proprietary data centers powered by 100% renewable energy, and AI cloud services providing high-performance computing (HPC) and GPU-as-a-Service for machine learning workloads. The company secured a transformational $9.7 billion contract with Microsoft in November 2025 to provide AI cloud infrastructure, marking its strategic pivot from crypto mining to hyperscale AI compute.

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  • MercadoLibre (MELI) – Munger Quality Rubric Stock Evaluation

    MercadoLibre (MELI) – Munger Quality Rubric Stock Evaluation

    View All Stock Evaluations | Evaluation Date: 2026-01-05

    How This Company Makes Money

    MercadoLibre is Latin America’s dominant e-commerce and fintech ecosystem. The company generates revenue through marketplace transaction fees (59% of revenue), digital payment processing via Mercado Pago (41% of revenue), shipping/logistics services (Mercado Envios), advertising (Mercado Ads), and a rapidly growing credit business offering consumer and merchant loans across 18 Latin American countries.

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  • Costco (COST) – Munger Quality Rubric Evaluation

    Costco (COST) – Munger Quality Rubric Evaluation

    Evaluation Date: 2025-12-29 | <- Back to All Stock Evaluations

    Costco Wholesale Corporation exemplifies Charlie Munger’s investment philosophy better than almost any other company. With a 92% membership renewal rate, the Kirkland Signature private label generating $30+ billion annually, and a culture of promoting from within, Costco scores an exceptional 86% on the Munger Quality Rubric. This evaluation examines why Munger himself served on Costco’s board and held its stock until his passing.

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