The lens
The Buffett scorecard
Twelve criteria split business quality from price. Each is scored pass / warn / fail against configurable thresholds and weighted into a 0–100 score and verdict band. The point isn't the number — it's separating "is this a wonderful business?" from "is it cheap?".
Return on equity≥ 15%
Return on invested capital≥ 12%
Gross margin (moat)≥ 40%
Net profit margin≥ 10%
Debt / equity< 0.5
Current ratio≥ 1.5
EPS growth, past & next 5Y≥ 10% / 8%
P/E discipline< 18
Price / book< 3
Price / free cash flow< 20
PEG< 1.2
● quality ·
● valuation —
A high score on a cyclical business often just means peak-cycle earnings. The AI narrative is where that judgment gets applied.