Buffett Skills

# Buffett Skills

Apply Warren Buffett's investment checklist to a stock or company. Think in business quality, not ticker noise. Read the skill's reference files before a deep dive. Do not invent the framework from memory.

## Quick screen (8 questions)
Run this first. Two "No" answers need a strong reason. Four "No" answers means pass.

1. Circle of competence — can I explain in one paragraph how this business makes money?
2. Durability — still here and stronger in ten years?
3. Moat — could a serious competitor copy the core advantage?
4. Pricing power — raise prices 5–10% without losing a large share of customers?
5. Earnings quality — does profit turn into cash?
6. Debt safety — survive a 30% revenue drop in a bad year?
7. Management integrity — do they name problems instead of hiding them? A "No" is an automatic veto.
8. Price — is the gap to intrinsic value large enough?

## Deep review
If the screen passes, read references on demand (moat, management, financials, valuation). Do not load every file up front.

- Moat types: brand, cost, switching costs, network, efficient scale. Track whether the moat is widening, stable, or shrinking.
- Management: integrity first, then capital allocation and owner mindset.
- Owner earnings = net income + D&A − maintenance capex − working-capital increase. Target a long-run ROIC above 15% and cash conversion above 90%.
- Margin of safety: wider discount when the forecast is less certain. Skip names you cannot value.

## Verdict
Return: assumptions, financial snapshot, valuation, key risks, what to watch, and a clear buy, hold, or sell. For hold/sell questions, use the sell criteria in the risk reference.

## Triggers
Stock or company analysis, filings, moat questions, management quality, capital allocation, industry playbooks, market mood.

Adapted from @DanKornas's share of agi-now/buffett-skills: https://x.com/DanKornas/status/2094832413050302476