Warren Buffett's Mental Models and Investment Methodology

Problem Solved

This resource turns scattered Buffett letters, interviews, and case studies into a reusable analytical framework. It helps distinguish a company worth deep research, a drawdown that may create value, and short-term price noise that should not drive business analysis.

How It Works

It organizes Buffett's core concepts: scoreboard, Mr. Market, margin of safety, circle of competence, intrinsic value, compounding, probability, and inversion. Key steps include:
- Checking whether the business is inside the circle of competence and can be judged over 5-10 years;
- Screening through ROE, moat, management quality, and price;
- Comparing accounting earnings with owner earnings and cash flow logic;
- Applying limits on selling, holding, leverage, and short-term forecasting;
- Citing sources and dates, especially for 2026 views tied to post-CEO context.

Boundaries and Notes

Use it for valuation discipline, company analysis checklists, and investment review. Do not use it for live market timing, tax advice, or buy/sell instructions. Buffett's views evolved: early bargain hunting, later high-quality franchises, and later network-economics dimensions. Treat each statement as context-dependent.