Knowledge Base
Everything you need to understand how Danu works — from stock screening metrics to investor styles to the alert system that watches your portfolio while you sleep.
📱Features Overview
Danu is built around one idea: take the investment philosophies of history's greatest investors and turn them into a screening, scoring, and alerting system you can run from your phone. Every feature ties back to helping you make more informed decisions — and taking emotion out of the equation.
Screens the market using the actual criteria that legendary investors used. Select a style (Buffett, Graham, Lynch, etc.) and the screener filters stocks that match that philosophy. Results are scored 0-100 and ranked. FREE includes Buffett, Graham, and Lynch. PRO unlocks all 16+ styles plus Blend Mode.
Takes screener candidates and scores them 0-100 across Valuation, Profitability, Growth, Balance Sheet, Momentum, and Risk. Each dimension is weighted based on your selected investor style. A stock scoring 80+ in the Buffett lens means it has strong fundamentals that Buffett would likely find compelling.
Log your positions with buy price and shares. The app tracks live P&L, daily moves, and total gain/loss vs your cost basis. Supports CSV import from Schwab, Fidelity, Robinhood, Vanguard, and E*Trade.
The alert system watches your portfolio and notifies you when action may be needed — sell signals, profit-taking opportunities, stop-loss triggers, and daily summaries. Delivers via push notification, Telegram, and Discord. You configure what runs, when, and how often.
Generates a structured brief for any stock using the RACE framework: Role (which investor lens), Assessment (fundamental evaluation), Context (recent news and price action), Execute (actionable conclusion). Available in Beginner (plain English) and Expert (metric-heavy) modes. PRO
Run historical simulations to see how an investor style would have performed during specific time periods. Survivorship-bias-aware. Test against dot-com crash, 2008 financial crisis, COVID drop, and more. FREE gets 3 replays/month.
Ask questions about stocks, your portfolio, or investing concepts. The AI can run features directly: "Show me my portfolio insights," "Screen for Graham stocks," "Look up AAPL." It understands your holdings, tier, and investor style. ELITE
🔍Stock Screener
The screener is the starting point. It pulls live market data and filters stocks based on the quantitative criteria used by your selected investor style. The output is a ranked list of candidates scored 0-100.
How It Works
Each investor style defines specific metric thresholds. The screener applies these as filters, then scores the survivors using weighted metrics. A Buffett screen, for example, prioritizes high ROE, strong margins, and low debt. A Graham screen prioritizes low P/E, low P/B, and high current ratio. The same stock can score very differently depending on the lens.
Blend Mode PRO
Blend Mode lets you mix multiple styles with weighted sliders. For example, 60% Graham + 40% Buffett creates a "conservative quality value" lens that requires both cheap valuation AND strong fundamentals. The final score is a weighted average of each style's independent score.
🔔Alert System
The alert system is designed to take emotion out of investing decisions. Instead of watching your portfolio all day wondering "should I sell?", the app monitors your holdings and tells you when something needs attention.
Alert Types
Runs daily and scans your entire portfolio through your investor style lens. Evaluates two things for every holding: sell signals (fundamental deterioration — e.g., ROE collapsed, margins eroding) and take-profit signals (you've hit a gain threshold where your style says to consider trimming). Sends a consolidated alert to push, Telegram, and Discord. This is the "set it and forget it" safety net.
A detailed per-holding fundamental health check you can run anytime. Shows your blend score, which style-specific thresholds are failing, and a breakdown by investor style. Think of Smart Alerts as the alarm bell and Sell Signals as the diagnostic report.
Intraday monitoring during market hours. Checks three protective rules: Stop Loss (position dropped below your threshold), Trailing Stop (stock pulled back significantly from its peak), and Take-Profit (hit a profit target). Schedule it to run every 5-30 minutes during trading hours.
Live snapshot of your entire portfolio's profit and loss — today's move and total gain/loss vs cost basis. Generates profit-taking guidance for each position based on how much it has appreciated.
Tracks three profit milestones for each holding: +25% (consider trimming a quarter), +45% (evaluate if the thesis still holds), +60% (protect gains with a trailing stop). These alert once per milestone so you don't get spammed — just the signal when it matters.
End-of-day summary of your entire portfolio: each position's value, gain/loss, which profit tiers have been reached, and whether any stop-loss levels were triggered. Schedule it for after market close so you can review the full picture and plan for tomorrow.
Notification Channels
Every alert can be delivered through three channels, all configured in the Profile tab:
- Push Notifications — Standard phone notifications. Requires the full app build (not Expo Go).
- Telegram — Connect your own Telegram bot. Alerts arrive in your Telegram chat with full formatting.
- Discord — Paste a webhook URL from any Discord channel. Alerts post there automatically.
You can use all three simultaneously. If none are configured, results are still shown in the app when you run alerts manually.
🤖AI Analysis (RACE Brief)
The AI analysis generates a structured investment brief for any stock using the RACE framework:
- Role — The investor style lens being applied (e.g., "As a Buffett-style investor...")
- Assessment — Fundamental evaluation using the style's criteria
- Context — Recent news headlines and price action that could affect the thesis
- Execute — Actionable conclusion with a clear recommendation framework
Available in two readability modes: Beginner (plain English, no jargon, everyday analogies) and Expert (metric-heavy, references specific ratios and thresholds). Powered by Claude AI with live market data.
⏪Replay (Backtesting)
Replay lets you stress-test an investor style against real historical market data. Pick a style, a time period, and see how a portfolio built on that style's criteria would have performed.
The system is survivorship-bias-aware, meaning it accounts for companies that went bankrupt or were delisted during the test period — not just the survivors. This gives a more honest picture of how a strategy would have actually performed.
Test against specific events: the 2000 dot-com crash, the 2008 financial crisis, the 2020 COVID drop, or any custom date range.
💬AI Chat
The AI assistant understands your portfolio, investor style, and subscription tier. It can answer questions about investing concepts, explain metrics, and run features directly through conversation.
Action commands include: "Show me my portfolio insights," "Screen for Graham stocks," "Look up AAPL," and "Navigate to Alerts." The AI executes these as actual app actions, not just text responses.
🎛️How Investor Styles Work
Every feature in Danu is filtered through an investor style. When you select a style, the app applies that investor's philosophy as a quantitative lens: which metrics matter most, what thresholds trigger alerts, and how to weight different factors when scoring a stock.
Each style has three components:
- Scoring weights — How much each metric contributes to the 0-100 score. A Buffett scorer weights ROE and margins heavily. A Graham scorer weights P/E and P/B heavily.
- Sell signal thresholds — Hard exits. When a holding's fundamentals deteriorate below these levels, the style says "this thesis is broken."
- Take-profit tiers — Gain thresholds where the style says "consider taking some profit." Compounders (Buffett, Munger) have higher tiers. Value investors (Graham, Klarman) have tighter ones.
Styles fall into five broad categories:
- Quality Compounders — Buffett, Munger, Akre, Fisher. Buy exceptional businesses and hold for years. Higher take-profit thresholds.
- Deep Value — Graham, Klarman, Dreman, Templeton. Buy cheap, sell when fair value is reached. Tighter exits.
- Growth — Lynch, Greenblatt. Balance between growth and valuation. PEG-aware.
- Momentum — O'Neil, Minervini, Driehaus, Soros. Price action and earnings acceleration. Tight stops.
- Balanced / Thematic — Dalio (risk parity), Wood (disruption). Unique approaches.
"Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1." Buy durable competitive advantages (wide moats) at fair prices. Focus on businesses with consistent earnings, high returns on equity, and proven management teams. Hold for decades.
Key Metrics
- ROE (16%) — target 15%+
- Profit margin (14%) — target 15%+
- Debt-to-equity (12%) — prefer under 50
- P/E TTM (10%) — fair, not cheap
- Revenue growth (8%) — steady, not explosive
- Earnings growth (8%) — consistent 12%+
- Operating margin (8%)
Sell Signals
- ROE falls below 10%
- Profit margin below 8% (moat eroding)
- D/E exceeds 150
- P/E exceeds 50
- Revenue shrinking more than 5%
Take-Profit Tiers
- +35% — trim 20%
- +60% — trim 25%
- +100% — trailing stop 15%
"The father of value investing." Buy stocks trading at steep discounts to their intrinsic value with a large margin of safety. Strict balance sheet discipline: low debt, high current ratio, consistent earnings. Patient waiting for the right price.
Key Metrics
- P/E TTM (16%) — target under 15
- P/B ratio (14%) — target under 1.5
- Current ratio (12%) — target above 2.0
- Debt-to-equity (12%) — prefer under 30
- Profit margin (8%)
- ROE (8%)
- Dividend yield (6%)
Sell Signals
- P/E exceeds 28
- P/B exceeds 3.0
- Current ratio falls below 1.5
- Profit margin turns negative
- D/E exceeds 100
Take-Profit Tiers
- +20% — trim 25%
- +35% — trim 33%
- +50% — trailing stop 10%
"Know what you own, and know why you own it." Growth At a Reasonable Price (GARP). The PEG ratio is king — find fast-growing companies that aren't overvalued relative to their growth rate. Strong revenue and earnings acceleration.
Key Metrics
- PEG ratio (18%) — target under 1.0
- Earnings growth (16%) — target 15%+
- Revenue growth (12%) — accelerating
- 6-month return (10%) — price momentum
- P/E TTM (8%) — reasonable, not cheap
- Profit margin (8%)
Sell Signals
- PEG exceeds 2.5
- Earnings growth turns negative
- Revenue shrinking more than 5%
- P/E exceeds 60
Take-Profit Tiers
- +25% — trim 25%
- +45% — trim 33%
- +60% — trailing stop 12%
"Magic Formula" investing — rank all stocks by two factors: earnings yield (how cheap) and return on capital (how good). Buy the top-ranked stocks. Historically ~31% annualized returns from 1988-2004.
Key Metrics
- Earnings yield (22%)
- ROE (20%)
- P/E TTM (12%)
- Operating margin (10%)
- Earnings growth (8%)
- D/E (8%)
- Revenue growth (6%)
Sell Signals
- P/E exceeds 30
- ROE falls below 12%
- Operating margin below 5%
Take-Profit Tiers
- +25% — trim 25%
- +45% — trim 33%
- +60% — trailing stop 12%
CANSLIM — market leaders with accelerating earnings and strong price momentum. Must be above the 200-day moving average. Cuts losses at 7-8% with a hard stop. Historically ~40% annualized returns (1958-1983).
Key Metrics
- Earnings growth (18%) — target 25%+
- Revenue growth (14%) — target 20%+
- 6-month return (14%)
- 12-month return (10%)
- Above 200 DMA (10%) — required
- Liquidity (8%)
Sell Signals
- Earnings growth turns negative
- Falls below 200 DMA
- Revenue declining
- 6-month return below -15%
Take-Profit Tiers
- +20% — trim 20%
- +35% — trim 33%
- +50% — trailing stop 8%
Quality growth investing. Buy businesses with exceptional management, wide gross margins (40%+), and consistent long-term revenue growth. Hold for decades. Sell only when the growth thesis truly ends.
Key Metrics
- Gross margin (30%) — target 40%+
- Revenue growth (25%) — target 15%+
- ROE (20%) — target 15%+
- Net margin (15%) — target 10%+
- Debt safety (10%)
Sell Signals
- Gross margin below 25%
- Revenue growth below 5%
- Net margin below 5%
- ROE falls below 10%
Take-Profit Tiers
- +40% — trim 15%
- +80% — trim 25%
- +150% — trailing stop 12%
Contrarian value. Buy the cheapest 20% of the market by P/E. Exploit pessimism and analyst expectation misses. Less focus on balance sheet quality, more on pure valuation cheapness.
Key Metrics
- P/E cheapness (40%) — target under 10
- Net margin (25%) — must be profitable
- Revenue stability (15%)
- Current ratio (10%)
- Debt safety (10%)
Sell Signals
- P/E exceeds 20 (no longer cheap)
- Net margin turns negative
- Revenue declining more than 15%
Take-Profit Tiers
- +25% — trim 25%
- +40% — trim 33%
- +60% — trailing stop 10%
SEPA (Specific Entry Point Analysis). Stage 2 uptrend — stock must be above all major moving averages. Earnings and revenue acceleration. Tight price action before breakout. Cut losses at 10-15%.
Key Metrics
- Trend (30%) — above 200 DMA required
- Revenue growth (25%) — target 20%+
- RSI momentum (25%) — target 60-80
- Earnings quality (20%)
Sell Signals
- Falls below 200 DMA
- RSI drops below 45
- Revenue growth below 5%
- Position down 12%+ from entry
Take-Profit Tiers
- +20% — trim 20%
- +35% — trim 33%
- +50% — trailing stop 8%
Higher quality bar than Buffett. Demands ROE above 20%, gross margins above 45%, low debt. Will pay a premium for truly exceptional businesses. Believes compounding returns from quality exceeds margin of safety from buying cheap.
Key Metrics
- ROE (35%) — target 20%+
- Gross margin (30%) — target 45%+
- Net margin (20%) — target 18%+
- Debt safety (15%) — D/E under 40
Sell Signals
- ROE falls below 12%
- Gross margin below 30%
- Net margin below 10%
Take-Profit Tiers
- +35% — trim 20%
- +60% — trim 25%
- +100% — trailing stop 15%
"Three-legged stool" — every investment must have: (1) exceptional ROE above 22%, (2) fat gross margins above 45%, and (3) revenue growth above 12% enabling reinvestment at high rates. Compounding machines. Holds 5-10+ years.
Key Metrics
- ROE (35%) — target 22%+
- Gross margin (30%) — target 45%+
- Revenue growth (20%) — target 12%+
- Debt safety (15%) — D/E under 35
Sell Signals
- ROE falls below 15%
- Gross margin below 30%
- Revenue growth below 4%
Take-Profit Tiers
- +40% — trim 20%
- +70% — trim 25%
- +120% — trailing stop 15%
"Buy high, sell higher." The opposite of value investing. Buy the strongest momentum stocks with accelerating earnings and revenue. RSI in the 65-85 range is ideal. Doesn't care about P/E if growth is strong. Cuts quickly on momentum breaks.
Key Metrics
- RSI momentum (35%) — target 65-85
- Revenue growth (30%) — target 25%+
- Trend (20%) — above 200 DMA
- Growth quality (15%)
Sell Signals
- RSI falls below 50
- Falls below 200 DMA
- Revenue growth below 10%
Take-Profit Tiers
- +25% — trim 25%
- +40% — trim 33%
- +55% — trailing stop 10%
Modern margin of safety. Buy at meaningful discounts to intrinsic value — what a rational acquirer would pay. Emphasize downside protection above all else. Will wait years for the right opportunity.
Key Metrics
- P/E discount (35%) — target under 13
- Balance sheet (25%) — CR + D/E composite
- Earnings quality (25%) — net margin 5%+
- Revenue stability (15%)
Sell Signals
- P/E exceeds 22
- Net margin turns negative
- Current ratio below 1.0
- Revenue declining more than 12%
Take-Profit Tiers
- +20% — trim 25%
- +35% — trim 33%
- +50% — trailing stop 10%
All-Weather Risk Parity. Balance across economic regimes — inflation/deflation, growth/recession. Prioritize low volatility, reasonable valuation, consistent dividends, and strong balance sheets. The Bridgewater approach.
Key Metrics
- Low volatility (25%) — target under 25%
- Dividend yield (20%) — target 1.5%+
- Debt safety (20%) — D/E under 60
- Current ratio (15%)
- Profit margin (10%)
- Max drawdown (10%)
Sell Signals
- Volatility spikes above 55%
- D/E exceeds 150
- Drawdown exceeds -45%
- Current ratio below 0.8
Take-Profit Tiers
- +25% — trim 20%
- +45% — trim 25%
- +70% — trailing stop 12%
Disruptive innovation. Companies at the center of transformative technology — AI, robotics, genomics, fintech. Extreme tolerance for high valuations if revenue growth is explosive (30%+). Accepts negative near-term earnings.
Key Metrics
- Revenue growth (35%) — target 30%+
- Momentum (25%) — trend + 6m return
- Earnings growth (15%)
- Liquidity (15%)
- Gross margin (10%)
Sell Signals
- Revenue growth below 5%
- Falls below 200 DMA
- 6-month return below -30%
- Gross margin below 15%
Take-Profit Tiers
- +30% — trim 20%
- +60% — trim 25%
- +100% — trailing stop 10%
"Buy at the point of maximum pessimism." Global contrarian deep-value. Hunt the cheapest stocks by P/E, P/B, and P/S. Look for turnaround potential. Comfortable with beaten-down momentum as long as the company is profitable.
Key Metrics
- P/E cheapness (30%) — target under 10
- P/B cheapness (20%)
- P/S cheapness (15%)
- Solvency (15%)
- Profitable (10%)
- Debt safety (10%)
Sell Signals
- P/E exceeds 22
- P/B exceeds 3.0
- Profit margin below -5%
- Current ratio below 0.8
Take-Profit Tiers
- +20% — trim 25%
- +35% — trim 33%
- +50% — trailing stop 10%
Reflexivity and macro momentum. Identifies positive feedback loops where rising prices attract more buyers, which pushes prices higher. Demands strongest momentum, high liquidity for fast exits. Price action dominates fundamentals.
Key Metrics
- Momentum (30%) — RSI + trend + 6m return
- Liquidity (25%) — target $20M+ daily
- 12-month return (20%)
- Revenue growth (15%)
- Market cap (10%)
Sell Signals
- Falls below 200 DMA
- RSI falls below 40
- 6-month return below -20%
- 12-month return below -15%
Take-Profit Tiers
- +20% — trim 25%
- +35% — trim 33%
- +50% — trailing stop 8%
Define your own investment criteria. Set hard gates (max P/E, min margin, max debt) and soft scoring weights. If a stock fails any hard gate, it scores zero. Survivors are scored on 9 configurable dimensions including valuation, profitability, growth, and momentum.
Configurable Parameters
- Max P/E ratio (default: 30)
- Min profit margin (default: 5%)
- Max debt-to-equity (default: 150)
- Min current ratio (default: 1.2)
- Min ROE, revenue growth, earnings growth
- Max volatility, require 200 DMA
How It Works
- Hard gates filter out non-qualifying stocks
- Survivors scored on 9 weighted dimensions
- Sell signals fire at 1.5x your max thresholds
- Take-profit at +25% / +45% / +60%
💲Valuation Metrics
Valuation metrics tell you how much you're paying for a company relative to what it earns, owns, or generates. They answer the question: "Is this stock cheap or expensive?"
P/E Ratio (Price-to-Earnings)
Stock Price / Earnings Per Share
How many years of current earnings you're paying for. A P/E of 15 means you pay $15 for every $1 of annual earnings. Lower is cheaper. Graham targets under 15; growth investors tolerate 30+.
P/B Ratio (Price-to-Book)
Stock Price / Book Value Per Share
How much you pay relative to the company's net assets. A P/B under 1.0 means you could theoretically buy the company for less than its liquidation value. Graham's holy grail.
PEG Ratio
P/E Ratio / Earnings Growth Rate
Peter Lynch's signature metric. Adjusts P/E for growth. A PEG under 1.0 suggests growth is underpriced. A stock with P/E 30 but 30% growth has PEG 1.0 — fairly valued by this measure.
P/S Ratio (Price-to-Sales)
Market Cap / Annual Revenue
Useful for companies with volatile or negative earnings. Lower means cheaper relative to revenue. A P/S under 1.0 is very cheap; above 10 is expensive.
Earnings Yield
Earnings Per Share / Stock Price (inverse of P/E)
Greenblatt's preferred metric. Expressed as a percentage. An earnings yield of 8% means the company earns $0.08 for every $1 of stock price. Higher is better. Compare to bond yields to judge relative attractiveness.
Dividend Yield
Annual Dividends Per Share / Stock Price
Cash return you receive just for holding the stock. A 3% yield means $3 per year for every $100 invested. Important for Dalio's risk-parity approach and Graham's income criteria.
📈Profitability Metrics
Profitability metrics measure how efficiently a company turns revenue into profit. High profitability often signals a competitive advantage — a "moat" that protects the business.
ROE (Return on Equity)
Net Income / Shareholder's Equity
How much profit a company generates with the money shareholders have invested. Buffett targets 15%+. Munger demands 20%+. A consistently high ROE suggests a durable competitive advantage.
Profit Margin (Net Margin)
Net Income / Revenue
How much of every dollar of revenue becomes profit after all expenses. A 20% margin means $0.20 profit per $1 of sales. Higher margins mean more pricing power and efficiency.
Gross Margin
(Revenue - Cost of Goods) / Revenue
Profitability before operating expenses. Fisher and Munger target 40%+. High gross margins indicate the product/service commands premium pricing. Software companies often have 70%+ gross margins.
Operating Margin
Operating Income / Revenue
Profitability from core operations, before interest and taxes. Shows how well management runs the business day-to-day. Buffett likes 12%+ operating margins as a sign of operational excellence.
ROA (Return on Assets)
Net Income / Total Assets
How efficiently a company uses its total asset base to generate profit. Useful for comparing companies with different capital structures. Higher is better.
🌱Growth Metrics
Growth metrics measure how fast a company is expanding. Growth investors (Lynch, O'Neil, Wood) prioritize these heavily. Value investors (Graham, Klarman) care less about growth speed and more about consistency.
Revenue Growth
(Current Revenue - Prior Revenue) / Prior Revenue
Year-over-year increase in sales. The most fundamental growth metric. Lynch targets 15%+, Wood demands 30%+. Negative revenue growth is a red flag for almost every style.
Earnings Growth
(Current EPS - Prior EPS) / Prior EPS
How fast profits are growing. O'Neil demands 25%+. Accelerating earnings growth (this quarter faster than last) is even more bullish. Negative earnings growth triggers sell signals in most styles.
🛡️Safety & Risk Metrics
Safety metrics assess whether a company can survive downturns, pay its debts, and avoid financial distress. Graham and Klarman weight these most heavily.
Debt-to-Equity (D/E)
Total Debt / Shareholder's Equity
How much debt a company uses relative to equity. Lower is safer. Graham wants under 30, Buffett under 50. A D/E above 150 triggers sell signals in most styles. High debt amplifies both gains and losses.
Current Ratio
Current Assets / Current Liabilities
Can the company pay its short-term bills? A ratio above 2.0 means it has $2 in liquid assets for every $1 it owes this year. Graham demands 2.0+. Below 1.0 signals potential liquidity crisis.
Quick Ratio
(Cash + Receivables) / Current Liabilities
Like current ratio but excludes inventory (which may be hard to sell quickly). A stricter test of short-term liquidity. Above 1.0 is generally healthy.
Interest Coverage
Operating Income / Interest Expense
How easily a company can pay interest on its debt. A ratio of 5 means it earns 5x what it needs to cover interest payments. Below 2 is concerning; below 1 means it can't cover its interest.
Max Drawdown
Largest Peak-to-Trough Decline (2yr)
The worst decline from a high point over the past two years. A -30% max drawdown means the stock fell 30% from its peak at some point. Lower drawdowns indicate more stable, less risky stocks.
Volatility (20-day)
Annualized Standard Deviation of 20-day Returns
How much the stock price swings day to day. Lower volatility means smoother, more predictable price action. Dalio weights this heavily (25%). A volatility above 55% triggers sell signals in his model.
⚡Momentum & Technical Metrics
Momentum metrics measure price trends and buying/selling pressure. Momentum styles (O'Neil, Minervini, Driehaus, Soros) weight these heavily. Value styles mostly ignore them.
RSI (Relative Strength Index)
Based on 14-day average gains vs losses (0-100 scale)
Measures buying/selling momentum. Above 70 is "overbought" (potentially overextended). Below 30 is "oversold" (potentially a bargain). Minervini targets 60-80. Driehaus likes 65-85. Below 40-50 triggers sell signals for momentum styles.
200-Day Moving Average (200 DMA)
Average closing price over the past 200 trading days
The most watched long-term trend indicator. Stocks above their 200 DMA are in an uptrend; below it, a downtrend. O'Neil, Minervini, and Soros all require stocks to be above the 200 DMA. Falling below triggers immediate sell signals.
6-Month / 12-Month Return
Price Change Over 6 or 12 Months
Recent price performance. Momentum investors want strong recent returns (stocks that are already going up tend to keep going up). Lynch, O'Neil, and Driehaus all weight 6-month returns significantly.
Liquidity (Average Daily Volume)
Average shares traded per day × price
How easily you can buy or sell without moving the price. Soros demands $20M+ daily volume for fast exits. Low liquidity means you might not be able to sell when you need to. Important for momentum and macro styles.
🧮How Scoring Works
Every stock gets a score from 0 to 100 based on your selected investor style. Here's what happens under the hood:
Step 1: Fetch Metrics
Danu pulls live financial data for the stock: earnings, revenue, margins, ratios, price history, and momentum indicators. This data comes from market data providers and is refreshed in real time.
Step 2: Score Each Metric
Each metric is scored 0.0 to 1.0 based on the style's preferred range. For example, in a Buffett scorer, an ROE of 20% might score 0.85 (very good), while an ROE of 8% might score 0.3 (below his standards). The scoring functions use smooth curves, not hard cutoffs — so a stock doesn't drop from "great" to "terrible" at a single threshold.
Step 3: Apply Style Weights
Each style assigns different weights to each metric. The weighted scores are combined into a final 0-100 composite score. A Buffett score of 80 means the stock hits most of Buffett's quality criteria. A Graham score of 80 means it's cheap with strong balance sheet protection.
Step 4: Blend (Optional)
In Blend Mode, multiple styles are scored independently, then combined using your weight sliders. A 60/40 Graham/Buffett blend takes 60% of the Graham score + 40% of the Buffett score. This lets you build hybrid strategies.
What's a Good Score?
- 80-100 — Excellent. Hits nearly all criteria for the selected style.
- 60-79 — Good. Meets most criteria with minor gaps.
- 40-59 — Mixed. Some strengths, some concerns. Worth investigating.
- Below 40 — Weak fit for this particular style. May score better under a different lens.
Disclaimer
Danu Finance is for educational and informational purposes only. Nothing in this knowledge base or in the app constitutes financial advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services. The investor styles, metrics, and scoring systems are quantitative models inspired by published investment philosophies — they are not endorsed by or affiliated with any named investor. Always do your own research and consult a qualified financial advisor before making investment decisions.