My Personal Analyst is Warren Buffett: AI Prompts to Identify the Real Deal Using 6 Key Criteria
The task of meticulously reading through a company’s financial statements and manually calculating indicators with a calculator requires a great deal of effort and time.
In particular, when trying to identify companies that possess capital efficiency and cash backing, rather than being distracted solely by superficial sales growth, there are a wide variety of items that must be checked.
To address these challenges, utilizing generative AI such as ChatGPT, Claude, Gemini, or Grok is an effective method for instantly completing quantitative screening simply by entering a stock ticker.
I used to attend finance school and learn corporate valuation methods, but that is no longer necessary.
If you prepare a prompt with the conditions pre-integrated, you can measure the degree of compliance with your criteria in just a few seconds.
I will introduce the prompt in Chapter 2.
I recommend that you try not only my prompt but also various other prompts available in the world.
By the way, the results of analyzing Coca-Cola ($KO), one of Buffett’s representative stocks, using the prompt introduced in Chapter 2 are as follows.
(For the AI, I used Claude’s Opus 5.5.)
# [Verified with Buffett’s 6 Criteria] Is Coca-Cola (KO) a Buy Now?
## Conclusion
It passed 5 out of the 6 criteria. The quality of the business almost meets Buffett’s standards, but the total free cash flow (FCF) for 5 years does not reach the market capitalization, so only the valuation fails.## Basic Corporate Information
– Ticker: KO
– Company Name: The Coca-Cola Company
– Stock Price: $95.84 (November 6, 2026)
– Market Capitalization: Approx. $404.7 billion
– Business: A franchise-type comprehensive beverage company that sells concentrate to bottlers and sells products in over 200 countries and regions.## Verification Results of the 6 Criteria
### 1. Market Capitalization: PASS
– Criteria: Within the top 30% of the market
– Actual Value: Approx. $404.7 billion (Top 1% range in the US market)### 2. ROE: PASS
– Criteria: 15% or more for 3 consecutive years
– Actual Value: Approx. 43% in 2023, approx. 42% in 2024, approx. 46% in 2025
– Calculated by dividing net income by the average shareholders’ equity at the beginning and end of the period.### 3. Net Profit Margin: PASS
– Criteria: Exceeding the industry average
– Actual Value: 28.7% (Last 12 months, net income of $14.63 billion against sales of $51.05 billion)
– Major competitor PepsiCo is around 10%, so it significantly exceeds this.### 4. FCF: PASS
– Criteria: Top 30% level of the market
– Actual Value: $14.3 billion (Last 12 months)### 5. Growth Potential: PASS
– Criteria: Market capitalization growth rate (year-on-year) exceeds capital growth rate
– Actual Value: Market capitalization +37.7%, capital approx. +21%
– The capital growth rate is a value compared to $39.5 billion as of October 2, 2026, after estimating the previous year’s same period at approx. $32.6 billion by adding and subtracting comprehensive income and dividends from January to September 2025 to the capital at the end of 2024. Since this includes estimates, the accuracy of this item is slightly lower.### 6. Valuation: FAIL
– Criteria: Total expected FCF for the next 5 years exceeds current market capitalization
– Actual Value: Approx. $33 billion to $72 billion, which does not reach the market capitalization of $404.7 billion.
– FCF was $9.75 billion in 2023, $4.74 billion in 2024, and $5.30 billion in 2025. Accumulating the 3-year average for 5 years results in approx. $33 billion.
– FCF for 2024-25 dropped due to temporary factors. In 2025, it was $11.4 billion excluding the payment of contingent consideration for the Fairlife acquisition.
– Even assuming the recent 12-month figure of $14.3 billion continues for 5 years, it is approx. $72 billion, which is less than 20% of the market capitalization.## Sustainable Competitive Advantage (Moat) and Risks
Buffett calls a company’s strength that is not easily imitated by others a “moat.” In this article, it will be referred to as “competitive advantage” hereafter.
– The competitive advantage is at a very strong level. Due to one of the world’s strongest brands and bottling networks in each country, the comparable operating margin for the third quarter of 2026 rose to 32.9%, and the monetary share of non-alcoholic beverages as a whole also grew.
– The biggest risk is the price. The stock price increase rate of 42.7% from the end of October 2025 to November 4, 2026, is mainly due to a 27.1% increase in the PER (Price Earnings Ratio). The stock price has risen more than the growth in earnings, and the FCF yield remains at around 3.5%.
– Business risks include a decrease in demand for sugary drinks due to health consciousness and geopolitics. The CEO has stated that conflicts in Eurasia and the Middle East are affecting some operations.## Summary
By Buffett’s standards, it is a company close to ideal, but now is not the price to add to holdings. Berkshire Hathaway has held it since 1988, so if you already own it, continue holding; if you are buying for the first time, wait for a stock price adjustment.*Data is based on public information as of November 6, 2026. Some parts include estimates. Please make your own final investment decisions.
In this article, I will organize 6 evaluation criteria based on the investment philosophy that Mr. Warren Buffett has demonstrated in the market over several decades, as well as specific prompts for executing them on AI.
Chapter 1: Buffett-style 6 Major Criteria for Stock Selection
Quantitative criteria for measuring corporate value from financial statements
In order to confirm a company’s sustainable growth potential and business superiority, one must not only look at simple scale expansion, but also pay close attention to how efficiently the invested capital is being operated and whether solid cash is being left on hand.
The selection criteria organized here are based on the following 6 strict items.
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Market capitalization is within the top 30% of the market: Targets companies of a certain size or larger that have secured liquidity and sufficient interest in the market.
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Return on Equity (ROE) for the last 3 years is 15% or more: Verifies whether invested capital is being moved efficiently and whether high profits are being continuously generated.
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Free Cash Flow (FCF) is at the top 30% level of the market: Selects companies that have solid cash actually accumulated on hand, rather than just figures on the books.
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Year-on-year growth rate of market capitalization exceeds the growth rate of shareholders’ equity: Verifies whether the market values the company’s value improvement more highly than the accumulation of shareholders’ equity on the books.
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Total expected free cash flow for the next 5 years exceeds the current market capitalization: Evaluates whether the current stock price level is clearly in the undervalued range relative to the cash-generating power to be produced in the future. Note that if future forecasting is difficult, a conservative estimate based on the actual FCF results of the last 3 years is applied.