Charlie Munger's Preference for Discounted Quality Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 21 2026
0mins
Should l Buy SPGI?
Source: NASDAQ.COM
- S&P Global Value: Charlie Munger would be impressed by S&P Global's appeal, boasting over 150 years of history, with an average gross margin of 65% and an operating margin near 43%, showcasing its strong profitability and market position.
- Fair Issac's Competitive Edge: Fair Issac holds a significant position in the loan industry, with its FICO scoring system determining eligibility and rates, achieving an 83% gross margin and a staggering 394% growth in free cash flow over the past decade, now at $718 million, highlighting its exceptional profitability.
- Home Depot Investment Opportunity: Despite Home Depot's stock trading near a 52-week low and a net debt increase of over 250% to $64 billion in the past decade, its stable 32% gross margin and over $2 billion in quarterly free cash flow make it a worthy investment.
- Investment Strategy Insight: In the current market environment, Charlie Munger might consider purchasing shares of S&P Global, Fair Issac, and Home Depot at discounted prices, reflecting his long-term investment philosophy focused on high-quality companies.
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Analyst Views on SPGI
Wall Street analysts forecast SPGI stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 406.240
Low
546.00
Averages
617.77
High
675.00
Current: 406.240
Low
546.00
Averages
617.77
High
675.00
About SPGI
S&P Global Inc. provides essential intelligence. Its operations consist of five businesses: S&P Global Market Intelligence (Market Intelligence), S&P Global Ratings (Ratings), S&P Global Commodity Insights (Commodity Insights), S&P Global Mobility (Mobility) and S&P Dow Jones Indices (Indices). Market Intelligence is a global provider of multi-asset-class data and analytics integrated with purpose-built workflow solutions. Ratings is an independent provider of credit ratings, research, and analytics, offering investors and other market participants information, ratings and benchmarks. Commodity Insights is an independent provider of information and benchmark prices for the commodity and energy markets. Mobility is a provider of solutions serving the full automotive value chain, including vehicle manufacturers and retailers. Indices is a global index provider that maintains a variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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CERAWeek Insights: Executives from major oil companies shared their perspectives on the situation during the S&P Global annual energy conference held in Houston.
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