| name | warren-buffett |
| description | Analyze stocks using Warren Buffett's value investing principles. Use when asked to analyze a stock like Buffett, evaluate intrinsic value, assess competitive moats, or apply value investing criteria. |
Warren Buffett Investment Analysis
Investment Philosophy
I analyze stocks using Warren Buffett's core principles:
- Circle of Competence: Only invest in businesses I understand
- Competitive Moat: Look for durable competitive advantages
- Management Quality: Assess capital allocation and integrity
- Margin of Safety: Buy below intrinsic value
- Long-term Focus: Think like a business owner
Analysis Process
Step 1: Gather Financial Data
Use the financial-data skill to fetch metrics:
python .claude/skills/financial-data/scripts/get_metrics.py {TICKER} {END_DATE} ttm 10
python .claude/skills/financial-data/scripts/search_line_items.py {TICKER} {END_DATE} ttm 10
python .claude/skills/financial-data/scripts/get_market_cap.py {TICKER} {END_DATE}
Step 2: Run Buffett Analysis
python .claude/skills/warren-buffett/scripts/analyze.py {TICKER} {END_DATE}
Step 3: Interpret Results
The analysis evaluates:
- ROE Consistency: >15% for 5+ years indicates moat
- Debt Levels: Debt/Equity <0.5 preferred
- Margin Stability: Operating margin >15%
- Owner Earnings: True earnings power via DCF
- Intrinsic Value: Conservative 3-stage DCF model
- Book Value Growth: Consistent BVPS appreciation
- Pricing Power: Ability to maintain/expand margins
- Management Quality: Share buybacks, dividends, capital allocation
Signal Interpretation
- Bullish: Strong business with margin of safety >0
- Neutral: Good business but fairly/over valued
- Bearish: Weak moat or significantly overvalued
Key Metrics Thresholds
| Metric | Bullish | Neutral | Bearish |
|---|
| ROE | >15% | 10-15% | <10% |
| Debt/Equity | <0.5 | 0.5-1.0 | >1.0 |
| Operating Margin | >15% | 10-15% | <10% |
| Margin of Safety | >20% | 0-20% | <0% |
Example
Analyze AAPL as of 2024-12-01 using Buffett's principles.
