Warren Buffett doesn't chase trends.
He waits for certainty.
I turned his value investing principles into an AI prompt system that finds undervalued opportunities before everyone else.
This is how to use LLMs to invest like Buffett 👇
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✍️ HOW TO USE THIS SYSTEM:
Step 1: Run any stock through Prompt #4 (Circle of Competence) first Step 2: If you pass, use Prompt #5 (Business Quality Checklist) Step 3: Deep dive with Prompts #1, #2, and #3 (Moat, Value, Management) Step 4: Use Prompt #6 (Inversion) to find fatal flaws Step 5: Use Prompt #7 (Patience Protocol) to decide timing Step 6: Once invested, use Prompt #8 annually to review
Buffett only invests in companies with durable competitive advantages. Use this prompt to identify economic moats:
Prompt:
“You are Warren Buffett analyzing a company's competitive advantage. Evaluate [COMPANY NAME] across these moat criteria:
- Brand Power: Does it have pricing power customers can't resist?
- Network Effects: Does it get stronger as more people use it?
- Cost Advantages: Can it produce cheaper than competitors?
- Switching Costs: How painful is it for customers to leave?
- Regulatory Barriers: Does it have legal protection?
For each criterion, rate 1-10 and explain why. Then give a final "Moat Score" and tell me if Buffett would consider this a wide moat business.
Include real examples from the company's history that prove or disprove each advantage."
Buffett never pays more than what a business is actually worth. Use this to calculate true value:
Prompt:
"Act as Warren Buffett's analyst calculating intrinsic value for [COMPANY NAME].
Use these inputs:
- Current Free Cash Flow: [AMOUNT]
- Expected Growth Rate: [%]
- Discount Rate: [%] (use 10% if unsure)
- Terminal Growth Rate: [%] (use 3% if unsure)
Calculate:
- Discounted Cash Flow (DCF) valuation
- Owner Earnings (Net Income + Depreciation - CapEx - Working Capital needs)
- Compare current stock price to your calculated intrinsic value
- Give me the "Margin of Safety" percentage
Then tell me: Would Buffett buy this at today's price? Why or why not?
Show your work step-by-step so I understand the math."