Day1Global Skills

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name: us-value-investing
description: US stock value investing analysis framework. Systematically evaluates listed companies through 4 core dimensions (ROE sustainability, debt safety, free cash flow quality, economic moat assessment), outputting investment ratings and analytical reasoning. This skill should be used when users mention topics such as whether a US stock is worth holding long-term, fundamental analysis of a company, ROE analysis, debt ratio assessment, free cash flow, economic moat, Buffett-style stock picking, value investing screening, how to read a company's financial reports, whether a stock's valuation is reasonable, etc. Even if users simply ask something general like "What do you think of stock XX?" or "Help me analyze XX's fundamentals," this skill should be triggered to provide a structured value investing analysis framework.
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# US Stock Value Investing Analysis Framework

This skill helps you systematically analyze whether a US-listed company is worth holding long-term using Buffett-style value investing methods. Through quantitative assessment across 4 core dimensions, it provides a clear investment rating.

## Use Cases

Use this skill when users ask the following types of questions:
- Whether a particular US stock is worth buying/holding long-term
- Help me analyze a company's fundamentals
- How to interpret a company's financial report data
- Whether a company has an economic moat
- Help me screen stocks using value investing methods

## Analysis Framework

### 4 Core Assessment Dimensions

For each dimension, use web_search to look up the target company's latest financial report data, then evaluate according to the criteria below.

#### Dimension 1: ROE Sustainability (Return on Equity)

**What it is**: ROE (Return on Equity) = Net Income / Shareholders' Equity. Simply put: for every $100 shareholders invest in the company, how much profit can it generate in a year. An ROE of 15% means every $100 of shareholder capital creates $15 in profit. This is the single financial metric Buffett values most — he believes a truly excellent company should be able to consistently and efficiently deploy capital.

**Key point**: Don't look at just one year's ROE; check whether it has maintained a high level **consistently for 3+ years**. A single year of high ROE could be due to one-time factors (selling a building, winning a lawsuit), and only sustained high ROE demonstrates genuine competitive strength.

**Search keywords**: `[Company name] ROE history` or `[Company name/ticker] return on equity 3 year`

**Scoring criteria**:
- 3+ consecutive years ROE > 20% → ⭐⭐⭐ Excellent (3/3 points)
- 3+ consecutive years ROE > 15% → ⭐⭐ Good (2 points)
- ROE 10-15% or inconsistent → ⭐ Average (1 point)
- ROE < 10% or highly volatile → 0 points

**Common pitfalls**:
- High leverage can artificially inflate ROE. If a company has high ROE but also high debt, take it with a grain of salt.
- Share buybacks reduce shareholders' equity, thereby "inflating" ROE. This needs to be evaluated alongside actual earnings growth.
- Cyclical industries (e.g., oil, semiconductors) will see ROE fluctuate significantly with industry cycles; a full cycle should be examined.

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#### Dimension 2: Debt Safety (Debt-to-Equity / Debt Ratio)

**What it is**: Measures how much a company borrows to fund its operations. Two commonly used metrics:
- **Debt-to-Asset Ratio** = Total Liabilities / Total Assets. 50% means half of the company's assets are funded by debt.
- **Debt-to-Equity Ratio** = Total Liabilities / Shareholders' Equity. 1.0 means borrowings equal shareholders' investment.