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Tag: Stock Evaluation

  • 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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  • 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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  • Robinhood (HOOD) Munger Quality Rubric: 48% Score Reveals Major Risks

    Robinhood (HOOD) Munger Quality Rubric: 48% Score Reveals Major Risks

    View All Stock Evaluations | Evaluation Date: 2026-01-06

    Robinhood makes money through three primary streams: transaction-based revenues from payment for order flow (PFOF) when routing stock, options, and cryptocurrency trades to market makers (58% of revenue); net interest income earned on customer cash balances, margin lending, and securities lending (35% of revenue); and subscription fees from Robinhood Gold memberships plus other services (7% of revenue). The company has successfully diversified from near-total PFOF dependence to a more balanced revenue mix.

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  • Stock Analysis Summary – Munger Quality Rubric Evaluations

    All Stock Evaluations

    This page provides a summary of all stocks analyzed using the Munger Quality Rubric – a comprehensive evaluation framework inspired by Charlie Munger’s investment principles. Each stock is scored across multiple categories including leadership quality, competitive moat, financial strength, and valuation.

    Score Interpretation:

    • 80%+ (Green): Excellent investment candidate
    • 60-79% (Yellow): Good with some concerns
    • 40-59% (Orange): Fair with significant issues
    • Below 40% (Red): Poor investment quality

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