The Buffett Analysis tool is designed to help investors analyze companies using Warren Buffett's investment principles. This documentation provides detailed information about the metrics, calculations, and methodologies used in the analysis.
Focus on businesses that are simple to understand and operate within your circle of competence.
Look for honest and competent management teams that allocate capital efficiently.
Seek companies with:
Buy at a reasonable price with a margin of safety.
Measures the company's pricing power and operational efficiency.
Threshold: > 40%
Shows how much profit the company generates from its revenue.
Threshold: > 15%
Measures how efficiently a company uses shareholders' equity.
Threshold: > 15%
Companies are scored on a scale of 0-100 based on how well they meet Buffett's criteria:
| Metric | Threshold | Points |
|---|---|---|
| Gross Margin | > 40% | 10 |
| Net Margin | > 15% | 15 |
| EPS Growth | > 10% | 15 |
| Debt/Equity | < 1.5 | 10 |
The application uses the Financial Modeling Prep API to fetch company data. Required endpoints:
/api/v3/profile/{symbol}
/api/v3/ratios/{symbol}
/api/v3/income-statement/{symbol}