Evaluate stock quality using ROCE, margins, and moat criteria.
npx skills add https://github.com/Talentedleo/financial_analyst --skill terry-smith
Please help me install this Agent Skill. Skill: terry-smith Source: https://github.com/Talentedleo/financial_analyst/tree/main/skills/terry-smith Command: npx skills add https://github.com/Talentedleo/financial_analyst --skill terry-smith
This Skill helps you evaluate investments using Terry Smith’s Fundsmith-style framework so you can separate business quality from stock price noise.
Use it to analyze a stock idea for long-term compounding (e.g., “Is this company investable as a 10-year owner?”), to decide whether to add after a drawdown, and to sanity-check whether you’re paying for business performance or multiple expansion.
Ask: “Using Terry Smith’s framework, assess whether [ticker/company] is a good company to buy long-term; include the ROCE/margins/cash conversion checks, competitive advantage test, valuation reasonableness, and a clear buy/hold/sell conclusion with what would make you change your mind.”
High-intent search queries and answers about installing and using this skill.
To evaluate a stock using the Fundsmith framework, you apply Terry Smith's quality investing process by checking ROCE, operating margins, cash conversion, and leverage, then assessing moat durability to reach a buy or hold decision. This separates business quality from stock price noise.
Quality investing requires applying hard ROCE and margin thresholds to decide if a business is worth examining. You must screen for high gross margins, strong operating margins, and robust cash conversion to ensure the company can compound capital effectively over the long term.
In a quality investing portfolio, you should sell a stock only when the underlying business changes or its quality and valuation break the original thesis. This low-turnover discipline enforces a do-nothing approach unless the competitive advantage deteriorates.
To assess competitive advantage and moat durability, check pricing power, customer stickiness, scale benefits, brand strength, and structural durability. This determines whether the business advantage can persist and supports a long-term buy or hold decision.
Yes, you can use this framework to decide whether to add to a stock after a drawdown by judging if the decline is temporary versus business deterioration. It helps distinguish temporary price drops from fundamental quality breakdowns.
To check if a stock's valuation is reasonable for long-term compounding, test whether the price is fair for the underlying quality and enforce valuation discipline. This sanity-check ensures you pay for business performance rather than multiple expansion.
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