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 looked at Kinder Morgan many times over the years, and our conclusion today is much the same as it has always been, only now the price is less forgiving. This is a genuinely useful business — perhaps the most useful collection of natural gas pipe in America — run by people who own a lot of stock and stopped doing foolish things a decade ago. But useful is not the same as wonderful. A pipeline is a toll road where the government caps the toll, the road must be repaved with billions of dollars every year, and the returns on all that reinvested capital run in the mid-single digits. After a 90% run in the stock since early 2024 on the strength of the AI-and-LNG gas story, you are being asked to pay roughly 22 times earnings for a business that earns about 9% on equity. We would not. This is a business Charlie and I can understand in an afternoon, which counts for something.
Recent filings analysed: 8-K (2026-08-03), FWP (2026-07-28), 10-Q (2026-07-24), 8-K (2026-07-22).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation