AI Prompting to Analyze Stocks Like Warren Buffett

Welcome back to AI in Investment Research & Finance, your weekly briefing on how smart AI prompts can lead to sharper, more actionable market insights.

This week marks a turning point in U.S. investing history.

Warren Buffett, the 94-year-old “Oracle of Omaha,” has asked Berkshire Hathaway’s (BRK:A) (BRK:B) board to name Greg Abel as CEO by the end of 2025. After more than six decades at the helm, his step back isn’t just a succession story. It’s the symbolic close of an era shaped by disciplined value investing, business intuition and long-term thinking.

Buffett championed value investing like no other professional investor. He taught generations to look past market noise and focus on fundamentals: companies with strong moats, capable management and the power of compounding over time. But in today’s volatile market, increasingly shaped by data and algorithms, one question remains: Can AI truly replicate Buffett’s value-driven mindset?

Some of the best decision-makers in business don’t necessarily rise through elite schools or structured training. Instead they operate on instinct, conviction and experience. That’s the kind of edge Buffett believes can’t be taught.

For those of us using AI models in investment research, this raises a rather provocative question: Can machines ever mimic the kind of gut-level judgment Buffett sees as potentially unteachable? Or put another way, will AI always fall short when it comes to reading people, navigating ambiguity and understanding when not to act?

It’s a timely challenge, especially as we ask AI to evaluate leadership quality, competitive advantage and operator skill in complex, data-rich environments.

So, we put AI models to the test, by prompting AI to think like Buffett.

Here are two strategic prompts: one that honours his timeless value investing philosophy, and another that considers what his succession might mean for Berkshire’s next chapter.

🔹 Prompt 1: Invest Like Warren Buffett

“Consider you are a senior equity analyst following Warren Buffett’s investment philosophy. Identify three U.S.-listed public companies with strong economic moats, consistent earnings growth, low financial leverage/debt and high return on equity. Base your evaluation on 5-year financials and include qualitative insights on leadership quality and pricing power. Cite sources where relevant (e.g. 10-K filings, Morningstar reports, or company investor presentations).”

🔎 Why this works: It mirrors Buffett’s decision-making process, letting AI replicate his legendary filters while surfacing new ideas.

🔹 Prompt 2: What Happens After Buffett?

“Act as a financial analyst. Evaluate the impact of Warren Buffett’s retirement and Greg Abel’s succession on Berkshire Hathaway stock’s long-term investment outlook. Consider historical performance, leadership style and market sentiment. Provide a SWOT analysis and outline investor risks and opportunities over the next 18–24 months. Reference all data points using credible sources such as Berkshire Hathaway’s annual letters, news reports or analyst coverage.”

🔎 Why this works: Leadership transitions shape long-term strategy. This prompt frames Berkshire as a living case study in succession, market trust, and legacy investing.

ETF Spotlight: VanEck Morningstar Wide Moat ETF (MOAT)

If you want to invest like Warren Buffett without the hassle of picking individual stocks, the VanEck Morningstar Wide Moat ETF (MOAT) may offer a smart, diversified solution.

Quick Overview (as of May 6, 2025):

• Current Price: $85.77

• 52-Week Range: $75.43 – $99.06

• Dividend Yield: 1.48%

• Expense Ratio: 0.47% per year

MOAT invests in U.S. companies that Morningstar identifies as having strong, lasting competitive advantages, or what they call “wide moats.” These companies are also typically trading below their estimated fair value, giving investors a chance to buy quality at a reasonable price. The ETF tracks the Morningstar Wide Moat Focus Index, which is updated quarterly to include stocks with the best mix of durable advantages and attractive valuations.

The fund typically holds around 50 companies, leaning toward mid- and large-cap quality stocks with strong fundamentals. Key sectors currently include health care (26%), technology (22%), industrials (18%) and consumer staples (14%). The top 10 stocks make up roughly 27% of the portfolio. Leading names as of this quarter include Huntington Ingalls Industries (HII), Boeing (BA), Allegion (ALLE), Corteva (CTVA) and Monolithic Power Systems (MPWR).

MOAT has dropped nearly 7.5% this year. Its price-to-earnings and price-to-book ratios stand at 23.80x and 3.63x, respectively.

🔎 Why MOAT may Matter Now:

With Warren Buffett stepping back from day-to-day management, many investors are searching for ways to follow his proven investment principles without needing to be experts themselves. MOAT may offer a hands-off approach to owning companies with strong competitive moats and reasonable prices, which are core Buffett criteria.

For those focused on long-term growth built on business strength, MOAT provides a clear, rules-based path that may mirror Buffett’s philosophy while no stock picking is required.

💡 Explore Further:

If you want to analyze the MOAT fund further, consider this prompt:
"As a senior portfolio strategist, evaluate the current composition and performance of the VanEck Morningstar Wide Moat ETF (MOAT). Break down sector allocations and compare MOAT’s one-year and year-to-date returns to the S&P 500 and Berkshire Hathaway (BRK.B). Assess how closely MOAT aligns with Buffett-style investing using valuation metrics and holdings overlap. Use sources such as Morningstar, VanEck’s official fact sheet and Berkshire’s annual reports."

📈 Final Thoughts

AI models can potentially replicate the logic behind Warren Buffett’s legendary investment screens, rapidly sifting through data for patterns and value. But they can’t replicate his gut instincts, patience or the conviction to hold through market storms. Buffett’s edge has always been judgment honed by decades of experience, not just algorithms.

The smartest way to use AI? Treat it as a co-pilot: let it handle the heavy data lifting and surface opportunities, but always apply your own critical thinking before acting. AI can help you move faster and see more, but it should never replace sound, human judgment.

Stay tuned for next week’s edition, where we’ll share new AI prompts for deeper sector analysis.

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🗓️ What’s on the Radar This Week

• Wednesday, May 7: Eurozone Retail Sales (March)

• Wednesday, May 7: U.S. FOMC Interest Rate Decision

• Thursday, May 8: Bank of England Policy Decision

• Friday, May 9: China Trade Balance (April)

• Monday, May 12: UCSB Economic Summit (California outlook, AI, trade)

• Tuesday, May 13: U.S. Consumer Price Index (April)

📊 Upcoming Key Earnings (May 7 – May 13)

Markets are heading into a critical earnings stretch. Here’s the day-by-day breakdown of major reports to watch:

May 7 (Wednesday):

• Uber Technologies (UBER): Q1 2025 Earnings Release

• Walt Disney (DIS): Q2 2025 Earnings Release

May 8 (Thursday):

• Anheuser-Busch Inbev (BUD): Q1 2025 Earnings Release

• ConocoPhillips (COP): Q1 2025 Earnings Release

• Toyota Motor (TM): Full Year 2025 Earnings Release

May 9 (Friday):

• Enbridge (ENB): Q1 2025 Earnings Release

• Essent Group (ESNT): Q1 2025 Earnings Release

May 12 (Monday):

• Fox Corp (FOX): Q3 2025 Earnings Release

• NRG Energy (NRG): Q1 2025 Earnings Release

May 13 (Tuesday):

• Bayer AG (BAYZF): Q1 2025 Earnings Release

• Honda Motor (HNDAF): Full Year 2025 Earnings Release

• Nissan Motor (NSANF): Full Year 2025 Earnings Release

🚀 AI Career Moves: Exciting AI Jobs This Week

Looking for your next opportunity in AI? Explore these standout roles across industries and locations:

• 🇺🇸 Director, People Analytics Research – The Coca-Cola Company
  Lead advanced people analytics research using statistical tools like R, Python, and Power BI to drive data-informed HR strategies and organizational effectiveness.
  📍 Atlanta, Georgia (Hybrid)
  View Job Posting

• 🇺🇸 AI/ML Intern – Eluvio
  Internship focused on generative AI and multimodal models (e.g. vision-language, LLMs). Open to graduate students in computer science or related fields.
  📍 Berkeley, California (On-site)
  View Job Posting

• 🇪🇸 AI Model Analyst – BNP Paribas
  Conduct independent evaluations of AI models, assessing conceptual robustness, result validity, performance monitoring, and implementation. Collaborate with data science teams and contribute to AI validation standards.
  📍 Madrid, Spain (Hybrid)
  View Job Posting

• 🇱🇹 Head of Artificial Intelligence – Orbio World
  Oversee AI strategy, team leadership, and cross-departmental integration to enhance business operations.
  📍 Kaunas/Vilnius, Lithuania (Hybrid)
  View Job Posting

• 🇵🇱 AI Engineer – Siena AI
  Develop and enhance AI products using large language models (LLMs) and related technologies.
  📍 Poland (Remote)
  View Job Posting

• 🇬🇧 Machine Learning Scientist/Engineer – Quantinuum
  Apply AI techniques to quantum computing challenges, including circuit optimization and error correction. Requires advanced degree and experience in applied AI and quantum computing.
  📍 London, United Kingdom (Hybrid)
  View Job Posting

• 🇮🇳 Senior Manager – Data Analyst – Jio-BP
  This role involves developing and deploying machine learning models, including NLP and computer vision solutions, to address complex business challenges. Responsibilities encompass data analysis, model building, and collaboration with cross-functional teams to drive data-informed decisions.
  📍 Navi Mumbai, India (On-site)
  View Job Posting

📩 Feel free to share this list with anyone looking for AI opportunities!