AIEQ0.580%
as of Oct 26
VRTX
GrowthVERTEX PHARMACEUTICALS INCORPORATED
Vertex Pharmaceuticals Incorporated operates as a biotechnology company in the United States, Europe, and internationally. The company offers transformative medicines for people with serious diseases with a focus on specialty markets, such as cystic fibrosis (CF), sickle cell disease (SCD), transfusion dependent beta thalassemia (TDT), and acute pain. It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age and older; ALYFTREK for the treatment for people with CF 6 years of age and older; SYMDEKO/SYMKEVI for treatment of patients with CF 6 years of age and older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 month or older who have CF with ivacaftor.
Close · 3M
+18.28%
Held by 2 AI ETFs
PQUS0.230%
as of Oct 23
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals7
Win rate57% (4/7)
Avg buy return+4.87%
AIEQ · Weight increase · 3d
weight 0.550% → 0.590% (+0.040 pp)·stock up 0.3% in the 30 days before
Oct 23·entry $523.93·now $523.93Fresh
0.00%
since Oct 23
AIEQ · Weight increase · 2d
weight 0.550% → 0.570% (+0.020 pp)·stock up 3.6% in the 30 days before
Oct 22·entry $535.17·now $523.93Fresh
-2.10%
since Oct 22
AIEQ · Weight decrease · 2d
weight 0.580% → 0.550% (-0.030 pp)·stock down 7.8% in the 30 days before
Oct 3·entry $503.50·now $523.93
+4.06%
since Oct 3
AIEQ · New entry · 1d
weight 0 → 0.580% (new)·stock down 8.3% in the 30 days before
Oct 1·entry $506.74·now $523.93Drifting
+3.39%
since Oct 1
AIEQ · Exit · 1d
weight 0.150% → 0 (exited)·stock up 13.6% in the 30 days before
Jul 1·entry $498.01·now $523.93
+5.20%
since Jul 1
AIEQ · Sudden change · 1d
weight 0.510% → 0.130% (-0.380 pp)·stock up 5.7% in the 30 days before
May 30·entry $438.40·now $523.93
+19.51%
since May 30
PQUS · Weight increase · 2d
weight 0.230% → 0.250% (+0.020 pp)·stock up 15.8% in the 30 days before
Aug 21·entry $548.05·now $523.93Fresh
-4.40%
since Aug 21
PQUS · Weight increase · 2d
weight 0.230% → 0.280% (+0.050 pp)·stock down 4.2% in the 30 days before
Jul 31·entry $477.10·now $523.93Drifting
+9.82%
since Jul 31
PQUS · Weight increase · 2d
weight 0.260% → 0.280% (+0.020 pp)·stock up 10.2% in the 30 days before
Jun 25·entry $480.18·now $523.93Drifting
+9.11%
since Jun 25
PQUS · Weight increase · 2d
weight 0.250% → 0.270% (+0.020 pp)·stock up 4.5% in the 30 days before
Jun 7·entry $442.96·now $523.93Chased
+18.28%
since Jun 7
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of Oct 25
AIEQ has been accumulating Vertex, lifting its weight from 0.57% to 0.59% over two consecutive days, while QRFT and PQUS hold smaller stakes. That conflicts with this framework's Fail verdict, since the AI models appear to be rewarding momentum, growth and quality factors while the Buffett-style read objects to the lack of a margin of safety at current valuation.
- Circle of CompetenceVertex's cystic fibrosis franchise has highly predictable, recurring unit economics with high patient persistence, though the pipeline beyond CF (pain, diabetes, kidney disease, gene therapy) is far less predictable and makes this a borderline call.
- Economic MoatNear-monopoly in CF treatment, protected by patents, clinical lead and entrenched patient switching costs, is a real moat for the next decade, although it is a patent-and-science moat that eventually expires rather than a permanent brand or network advantage.
- ManagementThe data provided does not show shareholder-letter candor, insider ownership or buyback discipline, so management quality cannot be judged here, though heavy R&D reinvestment and some large acquisitions warrant scrutiny.
- Financial HealthA 23.31% ROE, double-digit revenue growth and a strong cash-generating, low-debt profile point to healthy owner earnings, although the 10-year ROE history includes early loss-making years that would fail a strict no-year-below-10% test.
- Margin of SafetyAt roughly 31 times earnings, 6.2 times book and 34 times EBITDA, the price assumes continued growth and pipeline success, leaving little margin of safety against CF concentration and patent-cliff risk.
Vertex is a high-quality franchise with a real moat in cystic fibrosis, strong returns on equity and good owner earnings, so it clears the competence, moat and financial tests reasonably well. Management cannot be assessed from the data, and the valuation offers no clear discount to a conservative estimate of intrinsic value, so the framework lands on Fail on price rather than on business quality.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.