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.
Charlie and I spent a lot of years explaining the difference between a great company and a great business. Quanta Services is a great company — maybe the best-run contractor in America, sitting squarely in front of the largest electrical infrastructure build-out since rural electrification. But it is not a great business in the sense we use the term. It digs trenches, strings wire, and pours concrete for a living. It wins work by bidding against other capable people. It must re-earn essentially all of its revenue every year with tens of thousands of workers in bucket trucks, and its fattest year ever produced an 11.5% operating margin in its best segment. The market, meanwhile, has just decided — after a blowout second quarter reported July 30 — to pay roughly 74 times trailing GAAP earnings and about 39 times this year's adjusted earnings for that business. We admire the company.
Recent filings analysed: 8-K (2026-08-06), 8-K (2026-08-04), FWP (2026-08-04), 8-K (2026-07-30).
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