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The Buffett Screener

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

— Warren Buffett

Warren Buffett's Philosophy

Warren Buffett, the "Oracle of Omaha," is widely considered the most successful investor of all time. With a net worth exceeding $100 billion, he's proven that patient, disciplined value investing works.

Key Principles

  • Circle of Competence: Only invest in businesses you understand
  • Economic Moats: Look for durable competitive advantages
  • Long-term Thinking: Buy and hold quality companies forever
  • Management Quality: Honest, capable leadership is essential
  • Margin of Safety: Don't overpay, even for great companies

💡 Did You Know?

Buffett bought his first stock at age 11 and filed his first tax return at age 13. He read every book in the Omaha Public Library on investing by age 15!

Screener Criteria

Return on Equity (ROE)
> 15%
Consistent over 5+ years
Debt-to-Equity
< 0.5
Low debt, strong balance sheet
Free Cash Flow
Positive
Consistent cash generation
Profit Margin
> 10%
Sustainable profitability
Earnings Growth
Consistent
5-10 year track record

Example Results

Companies that match Buffett's criteria (for educational purposes only)

📚 Educational Data Updated: Delayed data for learning purposes
Company Ticker ROE Debt/Equity FCF Margin Moat
Apple Inc.
Consumer electronics		 AAPL 160% 1.8 $99B 25% Strong
Coca-Cola
Beverages		 KO 42% 2.5 $9B 23% Strong
American Express
Financial services		 AXP 31% 3.8 $12B 16% Moderate
Procter & Gamble
Consumer goods		 PG 32% 0.6 $15B 18% Strong
Meets Criteria
Below Threshold
Strong Durable competitive advantage
← Back to Screeners Learn More About Buffett

Deep Dive: Understanding Buffett's Criteria

🏆 Economic Moats

Buffett looks for companies with "moats" - competitive advantages that protect them from competition:

  • Brand Power: Like Coca-Cola or Apple
  • Network Effects: More users make the product more valuable
  • Cost Advantages: Cheaper to produce than competitors
  • Switching Costs: Hard for customers to leave
  • Regulatory Barriers: Licenses or patents that block competition

📊 Return on Equity (ROE)

ROE measures how efficiently a company generates profit from shareholder equity:

  • Calculation: Net Income ÷ Shareholder Equity
  • Buffett's Standard: Consistently > 15% over 5+ years
  • Why It Matters: Shows management can deploy capital effectively
  • Watch Out For: High debt can artificially inflate ROE

💰 Free Cash Flow

Cash is king. Free cash flow shows how much money a business actually generates:

  • Calculation: Operating Cash Flow - Capital Expenditures
  • Why Buffett Loves It: Can't be manipulated like earnings
  • Uses: Can fund growth, pay dividends, or buy back stock
  • Red Flag: Profits without cash flow