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.
We have spent our careers sorting businesses into three piles: wonderful, average, and bad. Baker Hughes is the rare company that sits in two piles at once. Roughly half of it — the Industrial & Energy Technology segment, anchored by turbomachinery that liquefies most of the world's LNG — is a genuinely good business with an installed base, decades-long service annuities, and real switching costs. The other half — Oilfield Services & Equipment — is the number-three player in a brutally competitive, capital-hungry, price-taking industry where we have watched fortunes evaporate for fifty years. Management understands this arithmetic, which is why they just spent $13.6 billion in cash and new debt to buy Chart Industries and tilt the portfolio toward the good half. We applaud the direction.
Recent filings analysed: 8-K (2026-09-09), 8-K (2026-07-27), 10-Q (2026-07-27), 8-K (2026-06-22).
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