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 lives looking for businesses that gush cash, require little of it back, and possess pricing power that doesn't depend on the kindness of a shortage. Digital Realty is the opposite animal: a capital-devouring landlord whose product is measured in megawatts, whose customers are the four or five most powerful companies on earth, and whose current prosperity rests on a scarcity of electrical power that every utility, regulator, and competitor on the planet is working furiously to eliminate. The company is executing well right now — record bookings, 25%+ cash renewal spreads, double-digit FFO growth after a lost half-decade. But we must distinguish a good period from a good business.
Recent filings analysed: 8-K (2026-08-19), 10-Q (2026-07-31), 8-K (2026-07-23), 8-K (2026-07-01).
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