like-buffett

name

like-buffett

description

Screen Korean and U.S. listed stocks for long-term 10x or 100x compounder potential using Buffett and Munger style quality, moat, management, runway, financials, intrinsic value, margin of safety, risk, and report-generation workflows. Supports English and Korean prompts. Use when asked to find, score, compare, value, calculate fair value per share, or write research reports on durable compounder candidates.

Like Buffett Skill

Use this skill to build evidence-based long-term equity research on Korean and U.S.-listed companies, especially when the user asks in English or Korean for Buffett-like thinking, hidden compounders, 10-bagger candidates, 100-bagger optionality, intrinsic value, fair value per share, margin of safety, or a structured report.

This skill is for research support only. Do not present outputs as personalized investment advice, price targets, trading signals, or guarantees. Always state uncertainty and distinguish facts from judgments.

Core workflow

1. Clarify scope only when required. Otherwise proceed with reasonable defaults.
   • Default markets: KRX KOSPI/KOSDAQ/KONEX, NYSE/Nasdaq/NYSE American.
   • Default horizon: 10 years or longer.
   • Default style: early Buffett plus Munger quality compounder lens.
   • Default output: ranked candidate list plus full company-by-company notes.
2. Gather current data from primary or high-quality sources.
   • Korea: DART filings, KRX/KIND, company IR, annual reports, WiseReport/FnGuide/Naver Finance when available.
   • U.S.: SEC EDGAR 10-K/10-Q/8-K, company IR, exchange pages, annual reports, investor decks.
   • Market and industry: official statistics, reputable market research, company filings, major exchanges, trusted financial data providers.
   • Always include source names and access dates in the report.
3. Build the candidate universe.
   • Exclude obvious unsuitable names unless the user asks otherwise: insolvent firms, repeated auditor issues, persistent capital raises with no path to profitability, shell/SPAC-like vehicles, and companies with insufficient disclosures.
   • Keep high-risk technology or biotech names in a separate "100x optionality" bucket rather than mixing them with Buffett-style quality names.
4. Apply the five-axis evaluation rubric.
   • Business understandability.
   • Economic moat and market position.
   • Financial quality.
   • Growth runway and future trend linkage.
   • Price, valuation, and margin of safety.
5. For each company, answer the four mandatory research questions.
   • What position does it hold in its market?
   • Who are the direct and adjacent competitors?
   • Does it have brand recognition among consumers, customers, or professional buyers?
   • Is it linked to durable future trends or future industries?
6. Score and classify.
   • Buffett-style priority candidates: high quality, understandable, durable, financially resilient, not overlevered.
   • 10x realistic candidates: smaller market cap, proven product-market fit, long runway, credible path to earnings compounding.
   • 100x optionality candidates: very small or highly scalable but high uncertainty; isolate risks clearly.
   • Watchlist or reject: unclear economics, weak governance, excessive leverage, cyclical peak earnings, or insufficient data.
7. Calculate intrinsic value when the user asks for a specific stock valuation, fair value per share, or buy-below price.
   • Read references/intrinsic-value-framework.md.
   • Collect current owner earnings or normalized free cash flow, diluted shares, net cash/debt, current price, and source dates.
   • Use bear/base/bull scenarios when assumptions are uncertain.
   • Prefer scripts/calculate_intrinsic_value.py when assumptions are structured.
   • Report intrinsic value per share, margin-of-safety buy-below price, current price, and upside/downside as scenario output, not advice.
8. Write the report.
   • Include executive summary, methodology, ranking table, company sections, risks, source notes, and follow-up checklist.
   • Avoid hype. Use probabilities, scenario logic, and falsification triggers.
   • Every factual claim that could be stale must be sourced.
9. Verify quality before finalizing.
   • Check ticker/market identifiers, latest filing periods, currency units, share count, market cap, revenue/earnings period, and whether one-off gains distort profitability.
   • Confirm there are no fabricated citations, unsupported financial figures, or stale dates.

Scoring rubric

Use a 1 to 5 score for each axis. Use half-points only if the evidence is strong. Keep notes for every score.

Axis	Weight	1	3	5
Business understandability	15%	Complex, opaque, speculative	Understandable but several moving parts	Simple business model, clear customer, clear unit economics
Economic moat and market position	25%	Commodity, weak position	Niche position or emerging differentiation	Category leader, switching costs, brand, network, cost, IP, or regulatory moat
Financial quality	20%	Loss-making, high leverage, poor cash conversion	Mixed cycle or improving	High margins, strong ROIC/ROE, FCF, conservative balance sheet
Growth runway and future trend linkage	25%	Stagnant or shrinking TAM	Moderate runway	Large global runway, structural trend, multiple expansion vectors
Price and margin of safety	15%	Priced for perfection	Fair but not cheap	Conservative assumptions still leave upside and downside protection

Composite score = weighted average out of 5. Classify as:

• 4.2 to 5.0: Top-tier compounder candidate.
• 3.6 to 4.19: Strong watchlist or 10x candidate with price discipline.
• 3.0 to 3.59: Deep-dive only if valuation is compelling or catalyst exists.
• Under 3.0: Watch/reject unless the user explicitly wants special situations.

10x and 100x scenario discipline

A 10x scenario should include:

• Starting market cap small enough that 10x is mathematically plausible.
• Revenue and earnings compounding path, not just multiple expansion.
• At least one durable moat or scale advantage.
• Conservative dilution assumptions.
• Clear reasons why the market may be underestimating the company.

A 100x scenario should be treated as an option, not a forecast. Require:

• Small starting market cap or enormous untapped TAM.
• Business model that can scale across countries or categories.
• Evidence of product-market fit.
• Balance sheet runway or self-funding path.
• Asymmetric upside with explicit failure modes.

Intrinsic value discipline

When asked to calculate intrinsic value for a specific stock:

• Treat the result as a scenario-based estimate, not a price target or recommendation.
• Use normalized owner earnings when possible. If unavailable, use normalized free cash flow and state that it is a proxy.
• Project explicit owner earnings, discount them, add discounted terminal value, adjust for net cash/debt and other claims, then divide by diluted shares.
• Calculate a margin-of-safety buy-below price from the intrinsic value per share.
• Use conservative assumptions for cyclicals, leveraged firms, banks, insurers, biotech, and pre-profit companies. If a DCF is inappropriate, say so and use a more suitable valuation frame.
• Include the assumptions table, sources, access dates, and falsification triggers.

Required company-section template

For each company, use this structure unless the user asks otherwise:

1. Company snapshot: ticker, exchange, market cap, business summary, core products, customer type.
2. Current market position: rank, niche, share, installed base, geographic footprint, or evidence-based proxy.
3. Competitors: direct, adjacent, substitutes, and global peers.
4. Brand recognition: consumer brand, B2B buyer recognition, professional reputation, or no meaningful brand.
5. Future trend linkage: long-term demand drivers and why they may persist.
6. Financial snapshot: revenue, operating profit, net income, margin, ROE/ROIC, FCF, debt, cash, dilution trend.
7. Intrinsic value: owner earnings, discount rate, terminal growth, net cash/debt, diluted shares, intrinsic value per share, buy-below price, current price, and upside/downside when requested.
8. Strengths: moat, unit economics, management, distribution, IP, data, regulation, cost position.
9. Weaknesses and risks: concentration, cyclicality, valuation, governance, technology disruption, regulation, accounting.
10. 10x/100x path: what must happen, rough scenario math, and key milestones.
11. Falsification checklist: what evidence would prove the thesis wrong.
12. Sources and dates.

Supporting files

• Methodology: references/evaluation-framework.md
• Intrinsic value guide: references/intrinsic-value-framework.md
• Data sourcing guide: references/data-source-guide.md
• Red-flag checklist: references/risk-red-flags.md
• Report template: templates/stock_report_template.md
• Input metric schema: templates/input_metrics_schema.csv
• Intrinsic value input schema: templates/intrinsic_value_input_schema.json
• Korean user guide: docs/README_KO.md
• Quantitative pre-screen script: scripts/score_companies.py
• Intrinsic value calculator: scripts/calculate_intrinsic_value.py
• Markdown report builder: scripts/build_report_from_cards.py
• Source validator: scripts/validate_sources.py