Value Investing MCP for Claude

A Model Context Protocol (MCP) server that brings Warren Buffett-style value investing analysis to Claude AI.

Features

• Earnings Yield Analysis: Calculate 3-year average operating income / enterprise value
• ROIC Evaluation: 5-year ROIC analysis to identify business quality
• Investment Classification: Automatic categorization into 4 investment lists
• Buffett Framework: Based on Warren Buffett and Charlie Munger's principles

Installation

Quick Setup (Recommended)

npx @owentaylor/value-investing-mcp

This will:

1. Automatically configure Claude Desktop
2. Install the MCP server
3. No manual configuration needed!

Manual Installation

1. Install the package globally:

npm install -g @owentaylor/value-investing-mcp

2. Add to your Claude Desktop config (~/Library/Application Support/Claude/claude_desktop_config.json):

{
  "mcpServers": {
    "value-investing": {
      "command": "npx",
      "args": ["-y", "@owentaylor/value-investing-mcp", "serve"]
    }
  }
}

3. Restart Claude Desktop

Usage

Once installed, ask Claude questions like:

• "Analyze Apple stock using value investing principles"
• "Calculate the earnings yield for this company: [provide data]"
• "Show me the value investing framework"
• "Classify this investment with 28% ROIC and 12% earnings yield"

Available Tools

1. analyze_stock - Comprehensive value investing analysis

   • Requires: company name, 3-year operating income, enterprise value, 5-year ROIC, current price
   • Returns: Full analysis with classification and recommendations

2. calculate_earnings_yield - Quick earnings yield calculation

   • Formula: 3-year avg operating income / enterprise value
   • Threshold: >10% to pass

3. calculate_roic - ROIC analysis over 5 years

   • Good Business: 15-25% ROIC
   • Wonderful Business: >25% ROIC

4. classify_investment - Classify into one of 4 lists

   • List 1: Good at Wonderful Price
   • List 2: Wonderful at Fair Price
   • List 3: FAT PITCH (Wonderful at Wonderful Price)
   • List 4: Wonderful but Overvalued

5. get_framework - View complete framework documentation

The 4 Investment Lists

LIST 1: Good Business at Wonderful Price

• ROIC: 15-25%
• Earnings Yield: >10%
• Action: Buy with discipline, 3-5 year hold

LIST 2: Wonderful Business at Fair Price ⭐

• ROIC: >25%
• Fair valuation
• Action: Buy and hold forever

LIST 3: FAT PITCH 🎯

• ROIC: >25%
• Earnings Yield: >10%
• Action: Buy aggressively - rare opportunity!

LIST 4: Wonderful but Overvalued

• ROIC: >25%
• Earnings Yield: <10%
• Action: Study now, wait for better price

Example

Ask Claude: "Analyze this company - Operating income: $100M, $110M, $120M 
over 3 years. Enterprise value $1B. ROIC: 22%, 24%, 26%, 28%, 30% over 5 
years. Current price $150."

Claude will respond with:

• Earnings yield calculation (11%)
• Average ROIC (26%)
• Classification: LIST 3: FAT PITCH
• Detailed investment recommendation

Philosophy

Based on Warren Buffett's principles:

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

This framework emphasizes:

1. Business quality (high ROIC)
2. Margin of safety (earnings yield >10%)
3. Long-term thinking
4. Patient opportunism

Requirements

• Node.js 18 or higher
• Claude Desktop app

Troubleshooting

Server not showing in Claude

1. Check config file location:

   • Mac: ~/Library/Application Support/Claude/claude_desktop_config.json
   • Windows: %APPDATA%\Claude\claude_desktop_config.json

2. Verify JSON is valid (no syntax errors)

3. Restart Claude Desktop completely (quit and reopen)

Tools not working

1. Check Claude Developer settings
2. Ensure MCP server shows as "connected"
3. View logs: Click "Open Logs Folder" in MCP settings

Contributing

Contributions welcome! Please open an issue or PR on GitHub.

License

MIT

Author

Owen Taylor - Pallas AI

Acknowledgments

Framework based on the investment principles of:

• Warren Buffett
• Charlie Munger
• Benjamin Graham