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 owned utilities before, and we understand why people reach for them: a legal monopoly, a captive customer, a regulator who guarantees you a return. But a regulated utility is a peculiar kind of business — it is a toll bridge where the state sets the toll, and the state also tells you how much you must spend maintaining the bridge. CenterPoint is currently the most exciting story in the regulated utility sector because Houston is being flooded with data-center demand, and the market has priced the stock like a growth company — roughly 23 times forward earnings for a business whose return on equity is capped by law in the mid-9s. We are being asked to pay a wonderful-business price for an average business that consumes every dollar it earns, and then some, and that must sell new shares and new bonds every year to fund its plan. We decline. Two stars.
Recent filings analysed: 8-K (2026-07-31), FWP (2026-07-30), 10-Q (2026-07-28), 8-K (2026-07-28).
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