warren-buffett

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:

1. Circle of Competence: Only invest in businesses I understand
2. Competitive Moat: Look for durable competitive advantages
3. Management Quality: Assess capital allocation and integrity
4. Margin of Safety: Buy below intrinsic value
5. 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.