Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We'll say it plainly up front, the way we'd say it in Omaha: this is the best industrial franchise story in America right now, attached to the most demanding price we've seen put on a cyclical equipment maker in our lifetimes. The core of GE Vernova — the gas power installed base and its decades-long service annuity, plus a transformer and grid business selling into a genuine shortage — is a very good business, arguably a wonderful one. Management is capable, honest about its problems, and has allocated capital sensibly. But at roughly 40 times next year's estimated earnings and about 36 times the company's own 2028 earnings target, the market has already paid GE Vernova for a decade of flawless execution. We would not sell a wonderful business we owned, but we would not put new money to work at $985. Three stars: a wonderful business at a premium.
Recent filings analysed: 8-K (2026-08-27), 10-Q (2026-07-22), 8-K (2026-07-22), 8-K (2026-05-22).
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