quality-screen

Screens listed companies against seven financial quality metrics to exclude non-first-tier stocks.

16.4k|2.5k|Updated Apr 7, 2026
One-click install
npx skills add https://github.com/xbtlin/ai-berkshire --skill quality-screen-xbtlin
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: quality-screen
Source: https://github.com/xbtlin/ai-berkshire/tree/main/codex-skills/quality-screen
Command: npx skills add https://github.com/xbtlin/ai-berkshire --skill quality-screen-xbtlin

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve? Investors screening stocks often waste time on companies that fail basic quality standards, or rely on vague impressions instead of hard financial criteria. This Skill applies a disciplined, quantitative filter so weak companies are excluded early, before any deep research effort is spent. ## Core Features & Use Cases - Seven hard exclusion metrics: 10-year average ROE, 5-year cumulative free cash flow, interest coverage, gross margin, operating cash flow to net income ratio, net margin, and share dilution. - Three exemption rules: Strategic investment-period exemption, voluntary low-margin exemption, and high-turnover thin-margin exemption (e.g., Costco-type models) so genuinely good companies are not wrongly rejected. - Batch screening modes: Accepts individual stocks, entire industries, index constituents, or themes, then screens each company and outputs pass/fail/exempt tables with sector-level statistics. - Use Case: Ask it to screen the Hang Seng Index constituents; it collects financial data for each company via web search, checks all seven metrics, and returns a summary table showing which companies pass, which are excluded and why, plus a sector quality ranking. ## Quick Start Run the quality screen on the Chinese beer industry to filter out companies that fail the seven financial quality metrics.

Frequently Asked Questions about quality-screen

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I screen stocks for financial quality before investing?

Apply seven hard metrics: 10-year average ROE above 8%, positive 5-year cumulative free cash flow, interest coverage above 2x, gross margin above 15%, operating cash flow to net income above 0.7, net margin above 5%, and share dilution under 20% over five years.

How to screen an entire industry or index for quality companies?

Provide the industry, index, or theme name as input. The workflow searches for the major listed companies in that scope, collects financial data for each in parallel, checks all seven metrics per company, and outputs pass rates, rankings, and a sector quality summary.

Does this screening method work for banks and insurance companies?

Banks and insurers are exempt from the interest coverage metric because their business model is inherently spread-based lending. The other six metrics still apply normally to these financial institutions.

Can good companies like Costco or Amazon fail these quality metrics?

Three exemption rules prevent false rejections: strategic investment-period exemption for young high-margin companies, voluntary low-margin exemption for reinvesting businesses, and high-turnover thin-margin exemption for models like Costco with high ROE despite low margins.

What are the limitations of quantitative stock screening?

Passing the screen only means a company is not definitively weak; it does not confirm it is a good investment. Business model durability, management integrity, valuation, and competitive dynamics still require separate deeper analysis.