Munger Mode rating: 2 out of 5 — Sell. 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 voice and framework of Warren Buffett and Charlie Munger. Based on the Q2 2026 Form 10-Q (period ended June 30, 2026, filed July 2026), recent earnings communications, and current market data. American Water is the largest regulated water and wastewater utility in the United States, and it is about as easy a business to understand as exists in the S&P 500. People must drink water, and the pipes under the street are a monopoly. But we have spent our lives distinguishing between a business that is safe and a business that is wonderful, and this one is safe without being wonderful.
Recent filings analysed: 8-K (2026-07-29), 10-Q (2026-07-29), 8-K (2026-07-16), 8-K/A (2026-07-06).
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