Quality Score

What it is\nA single number summarising everything Buffett looks at on the "is this a good business?" side of the analysis (separate from "is the price right?"). Computed from:\n\n- ROIC (5-year average + TTM): rewarded above 12%, penalised below 5%\n- Gross margin stability: 5-year standard deviation, lower is better\n- Balance-sheet health: net debt/EBITDA, current ratio, interest coverage\n- Earnings consistency: % of last 5 years profitable, max single-year EPS decline\n- Growth quality: free-cash-flow growth, share-count discipline (no dilution)\n\n## How to read it\n- 80–100: Excellent — Buffett-grade quality, the businesses you'd want to own forever\n- 65–79: Good — solid businesses, often available at fair prices\n- 50–64: Fair — average for the market, depends heavily on price\n- < 50: Poor — structural problems, avoid unless deeply discounted\n\nOnly ~9% of the 12,000+ stocks tracked clear the 80 threshold. That rarity is the point — true quality is uncommon, and value investing rewards patience for it.