Each step is independent. Each step is auditable. The brain leaves a trace of what it read and how it reasoned.
Each investor reads the same business and asks a different question. We do not average their answers — we present them. Where they agree, conviction is genuine. Where they disagree, the texture of the investment becomes visible.
"Time is the friend of the wonderful business, the enemy of the mediocre."
— 1989 Letter to Shareholders
"Invert. Always invert. Tell me where I'm going to die, so I never go there."
— On Mental Models
"We invest in simple, predictable, free-cash-flow-generative businesses with deep moats."
— Pershing Square Holdings, Annual Letter
"The most important question is: how high are the barriers to entry, and how durable are they?"
— TCI Investor Letter
"You really only need a few good ideas in your lifetime, but you have to be able to recognize them."
— Columbia Business School Lecture
"In investing, you are correct or incorrect — but the market does not have to agree on your timeline."
— Margin of Safety
Reported earnings can be massaged. Free cash flow ignores reinvestment requirements. Owner earnings is the figure Buffett actually uses to value a business — and the figure AMORDAD computes on every analysis.
"The figure for the cash a business throws off — that the owner could remove without harming the business's competitive position."
Reported EPS is the starting point, not the conclusion. AMORDAD computes a full earnings quality assessment on every analysis — measuring cash conversion, accruals discipline, share-count manipulation, and the gap between what GAAP reports and what Buffett actually calls earnings.
GAAP net income includes non-cash charges, one-time items, and accounting choices. Owner Earnings strips all of that away. The spread between the two numbers — positive or negative — is AMORDAD's first earnings quality signal.
Each investor in the panel reads earnings through a distinct framework. Munger inverts: what is management hiding? Ackman normalizes: what is the real recurring capacity? Klarman stress-tests: what do these earnings become in a recession? All six voices, applied to the same reported figure.
A 0—100 composite score based on cash conversion consistency, accrual quality, share-count discipline, and how often "non-recurring" items recur. A score above 80 signals trustworthy earnings. Below 50 is a red flag worth reading carefully.
Klarman wrote a book on it. Graham named it. The principle is simple: never buy a business at its intrinsic value. Buy it at a discount large enough that being wrong about the future does not become a permanent loss.
AMORDAD will not return a COMPOUNDER takeaway unless the business trades at or below seventy-five percent of estimated intrinsic value. The buffer absorbs error in the model — and there is always error in the model.
Every analysis scores the business across five orthogonal axes. A wonderful business with bad management is not the same as a mediocre business with great management. We do not blend them.
Fundamental analysis tells you what a business is worth. Insider and congressional trading data tells you what the most informed people in the world are actually doing with their own money. AMORDAD surfaces both, for every analysis you run.
CEOs, CFOs, directors, and 10% beneficial owners are required to disclose trades within two business days of the transaction. When a CEO buys $10M of their own stock quietly, AMORDAD flags it. When a CFO sells heavily in an unusual pattern, AMORDAD flags that too. Net buy/sell value and a sentiment verdict — from STRONG BUY SIGNAL to HEAVY SELLING — are computed for every ticker analyzed.
Congressional trading disclosures are widely tracked as a sentiment signal by professional research desks. Required by the STOCK Act, these filings — from both the Senate and House — have drawn academic and institutional attention as a supplementary data source. AMORDAD pulls all available disclosures via the FMP API, filters to the 30-day window, and presents them with a sentiment classification alongside the fundamental analysis — not as investment advice, but as context most screeners ignore.
All insider and congressional data is sourced from the Financial Modeling Prep (FMP) API. Insider transactions are derived from SEC Form 4 filings. Congressional disclosures are filed under the Stop Trading on Congressional Knowledge (STOCK) Act, which requires disclosure within 45 days of the transaction. AMORDAD does not interpret this data as investment advice — it presents it as one signal among many, alongside the six-framework fundamental analysis.
Every analysis ends in a letter. The letter is signed by the AMORDAD Capital Investment Office. It is written in the spirit of Buffett's sixty years of shareholder letters — but it is independent. It will tell you when a famous stock is overpriced. It will tell you when the business has changed for the worse.
The letter does not exist to confirm what you already think. Roughly one in three letters declines a famous stock. We would rather lose a subscriber than tell them what they want to hear.
No advertising relationships. No paid placements. No undisclosed positions. The investment office holds no stocks personally and accepts no compensation from any company analyzed.
Plain prose. Numbered paragraphs. Owner-mindset framing. A signature. The form is taken seriously because the form carries meaning — the way Berkshire's letters do.
The cash a business generates after the reinvestment required to maintain its competitive position. The number Buffett uses to value Berkshire's businesses.
A valuation that projects future cash flows and discounts them to present value. Useful as a discipline. Dangerous when treated as truth.
Return on invested capital. The single best measure of capital efficiency. A business compounding at 20% ROIC will, over time, swallow a business at 8%.
The discount between intrinsic value and price. Graham's central idea. If your model is off by 20%, the buffer absorbs the error.
The percentage difference between GAAP EPS and Owner Earnings per share. A large positive gap (Owner EPS exceeds GAAP) signals conservative accounting and high-quality earnings. A negative gap is a red flag.
Hohn's test: for every dollar of earnings the company retains rather than paying out, how much new shareholder value is created? Below 12 cents on the dollar is unacceptable. Above 20 is exceptional.