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 control their own destiny — businesses where good management and a durable franchise compound value regardless of what the weather, the legislature, or the plaintiff's bar happens to be doing that year. Edison International is the opposite case: a competent operator of a genuine monopoly whose economics are set by a regulator, whose liabilities are set by a doctrine of strict liability called inverse condemnation, and whose survival as an investable enterprise now depends on a wildfire insurance fund and the continued goodwill of the California legislature. The stock trades at roughly 13 times this year's core earnings with a 4.5% yield, which looks cheap — but cheapness is not the question. The question is whether this is a wonderful business, and it is not.
Recent filings analysed: 8-K (2026-07-31), 10-Q (2026-07-30), 8-K (2026-07-30), 8-K (2026-05-05).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation