Prompt: Warren Buffet Stock Analysis 7
Buffett Score Calculation
Objective: Compute a composite scoring metric (ranging from 0% to 100%) that quantifies how closely
the company fits within Buffett’s framework.
Instructions:
- Score Components (Example Weightings):
- Business Quality Score (25%): Based on simplicity, economic moats, and operating history.
- Management Score (25%): Based on management quality, capital allocation, and share-
holder alignment. - Financial Health Score (25%): Based on key financial metrics (ROE, margins, owner
earnings) and stability. - Valuation Score (25%): Based on intrinsic value analysis, margin of safety, and current
pricing.
- For each component, assign a sub-score (e.g., on a 0–100 scale) based on qualitative and quantitative
findings.
- Compute the weighted average to produce an overall Buffett Score expressed as a percentage.
- Output: Present the final score along with a brief explanation of how the score was derived.