Warren Buffett Investment Analysis Prompt

This prompt is based on Buffett's value-investing approach, covering 8 core dimensions: economic moat, management evaluation, financial health, valuation, margin of safety, long-term prospects, risk assessment, and decision discipline. Paste it into ChatGPT or Claude and request a structured output: a one-sentence thesis, key risks, invalidation triggers, and a margin-of-safety range. Use it to organize research, not to outsource certainty—verify facts in primary sources and stay within your circle of competence. ⚠️ AI analysis is for reference only. Always conduct your own research before making investment decisions.

Full Prompt Content

Decision checklist (before you act)
  • {
  "t": 0,
  "b": {
    "t": 2,
    "i": [
      {
        "t": 3
      }
    ],
    "s": "Write a 1-sentence thesis (what must be true)."
  }
}
  • {
  "t": 0,
  "b": {
    "t": 2,
    "i": [
      {
        "t": 3
      }
    ],
    "s": "List disconfirming evidence and invalidation triggers."
  }
}
  • {
  "t": 0,
  "b": {
    "t": 2,
    "i": [
      {
        "t": 3
      }
    ],
    "s": "Define a valuation band or margin-of-safety range (avoid false precision)."
  }
}
  • {
  "t": 0,
  "b": {
    "t": 2,
    "i": [
      {
        "t": 3
      }
    ],
    "s": "Set position sizing and risk limits before price moves."
  }
}
  • {
  "t": 0,
  "b": {
    "t": 2,
    "i": [
      {
        "t": 3
      }
    ],
    "s": "Schedule a review date and update only on new evidence."
  }
}
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Getting Started
What makes this prompt different from other stock analysis tools?
This prompt mirrors the way Buffett-style investors structure research: business quality and moats, management and capital allocation, financial strength, valuation with a margin-of-safety mindset, and downside risks. It is designed to produce a written checklist and a defensible thesis summary, not a trading signal.
Can beginners use this prompt effectively?
Yes. The prompt guides you through each analysis step with clear questions. However, basic understanding of financial statements (income statement, balance sheet, cash flow) will help you interpret AI responses better.
What is the difference between this and traditional stock screeners?
Traditional stock screeners filter by numbers (P/E, market cap, leverage). This prompt is meant for deeper due diligence: it helps you write down the business case, identify what you must verify in filings, surface risks and counter-theses, and document why a company is (or is not) investable under a Buffett-style lens.
How to Use
Which AI model should I use with this prompt?
Use a strong general-purpose reasoning model (the latest ChatGPT or Claude). If your model supports citations or browsing, enable it and ask the AI to cite primary sources for key numbers (filings, shareholder letters, annual reports) before you trust any metric.
How often should I re-analyze a company?
Re-run the analysis when your thesis inputs change: after quarterly or annual filings, when management or capital allocation policy changes, when competitive position shifts, or when your original assumptions no longer match the latest evidence.
Can this prompt analyze non-US stocks?
Yes, this prompt works for any publicly traded company worldwide. Simply enter the company name and the AI will apply Buffett's framework. However, data availability may vary for non-US companies, and financial reporting standards differ (e.g., IFRS vs. GAAP), so always cross-reference with local regulatory filings.
How should I interpret the AI's output?
Treat the AI's analysis as a research starting point, not as a buy or sell signal. The output provides a structured framework for thinking about the company, but you should always cross-reference key metrics with actual financial data from official filings. Use the analysis to guide your own due diligence rather than relying on it as the sole basis for investment decisions.