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How Pythia ScoresLesson 4 of 4 · The guru pyramid

How Pythia scores

Best Match — which investor would recognise this company

The Best Match badge names the guru archetype a company fits most strongly. It is a description of fit, not a recommendation, and the small archetypes are easier to max out than the large ones.

5 min readIntermediateLast checked against the product on

How the badge is decided

Each of the 18 pyramid signals belongs to a guru archetype. For every archetype we count how many of its own signals fired, take that as a ratio, and the highest ratio wins. Ties break on the higher absolute pass count first, then on a fixed order so the answer is deterministic.

ArchetypeSignalsWhat it tests
Graham margin of safety5Graham Number and the intrinsic-value suite
Intrinsic value4Discounted cash flow, multiples, bond-relative value
Buffett moat2Owner earnings and the dollar-of-capital test
Lynch growth2EPS growth and Lynch fair value
Greenblatt2Return on capital and earnings yield
Marks cycle2Operating and financial leverage
Safety first2Debt health and free-cash generation
Thorndike outsiders2Debt to EBITDA and the retention test
Buffettology growth2EPS and ROE compounding
Pabrai value1Price-to-sales discipline
Drucker efficiency1EBIT per employee
CAPEX Efficiency1Operating cash generation against capital spending
Owner earnings1Owner-earnings growth rate

The thing to watch

Look at the signal counts in that table, because they are not equal.

An archetype with one signal is at 100% the moment that single signal fires. An archetype with five needs all five. So a company can be labelled "Drucker efficiency" on the strength of one passing test while sitting at four of five on Graham — and the ratio rule, taken alone, would hand the badge to the one-signal archetype.

The absolute-pass-count tiebreak is what stops the worst version of this: a 5-of-5 Graham beats a 2-of-2 Buffett when both ratios are 1.0. But it only resolves ties. A 1-of-1 at 100% still outranks a 4-of-5 at 80%, and that is worth knowing when a badge surprises you.

Read the badge as "of the frameworks we test, this is the one it fits best", not "this is a strong fit".

A fit is not a verdict

If a company matches Buffett Moat at 2 of 2, that means both Buffett-style signals we compute pass. It does not mean the stock is cheap, that Buffett would buy it, or that you should.

The archetype layer is narrative — it tells you which tradition's language describes this company, which is genuinely useful when you are deciding what to investigate next. The empirical layer is PAS. Reading the badge as a recommendation is the single most common way to misuse it.

Check yourself

4 questions. Nothing is recorded unless you are signed in, and nothing here affects anything else.

1. A company passes 4 of 5 Graham signals and the single Drucker efficiency signal. Which badge does it get?
2. A company's Best Match reads Pabrai value. What does that establish about the strength of the fit?
3. Buffett moat shows 2 of 2 for a company. Which conclusion does that support?
4. What is the Best Match badge actually useful for?

4 questions left. An unanswered question counts as a miss, so the check waits for all of them.

Sources

Further reading