- Carbon Finance
- Posts
- ChatGPT Investing Guide
ChatGPT Investing Guide
Carbon Finance
February 06, 2024
I use ChatGPT on a regular basis for my investing research.
Here are 12 different ways you can leverage AI to save you dozens of hours of research and allow you to make decisions faster.
While most of these prompts can be done using the free version of ChatGPT, some prompts may require ChatGPT Plus.
As always, be sure to read through the disclaimer before using the guide!
Table of Contents:
Understanding Business Models
Peter Lynch famously said, “Know what you own, and know why you own it.”
Prompt: Explain [Insert Company Name] business model in a simple, easy to understand, and concise manner.
Summarize Financial Reports
ChatGPT can help you save time sifting through financial reports and highlight the areas that you need to research more granularly.
Prompt: I've attached [Insert Company Name]’s latest financial report. Can you act as a financial analyst and summarize the report into bullets with key figures, metrics, and trends? Include percentage growth/declines where applicable and include a summary of the report holistically. Callout any risks you notice that should be looked at closer.
Explain Complex Financial Terms
Leverage the tool to walk you through financial terms and how they are calculated.
Prompt: Can you explain [Insert Financial Term], using [Insert Company Name] as an example? The explanation should be simple, concise, and easy to understand.
Summarize Earnings Calls
Earnings calls are the best way to stay up to date on the company you own and listen directly to management talk about the quarter and future outlook.
Prompt: I’ve attached the transcript to [Insert Company Name]’s most recent earnings call. Can you summarize the call with 5 major highlights? The highlights should be simple, easy to understand, and concise.
Perform SWOT Analysis
A SWOT analysis is used to evaluate a company’s competitive position by highlighting its strengths, weaknesses, opportunities, and threats.
Prompt: Can you perform a SWOT analysis on Nvidia? Ensure the SWOT is concise, easy to understand, and includes everything I need to know.
Competitor Comparison Overview
Even if a company has a strong competitive advantage, you should know who it competes with and in what segment.
Prompt: Can you list out the different publicly traded competitors of [Insert Company Name] across its business segments. Ensure the list is as concise and easy to understand as possible.
Perform News Aggregation
Have ChatGPT gather recent news articles or press releases as an initial start for your research.
Prompt: I'm thinking about investing in [Insert Company Name]. Can you gather recent news articles or press releases to stay informed about impactful developments. Provide a super short, concise summary (no more than 25 words) about each one.
Summarize Key Lessons From Top Books
Don’t have time to read some of the best investing books? Have ChatGPT summarize key lessons from the books.
Prompt: Can you summarize the 10 most important lessons of [Insert Investing Book]? Ensure each lesson is easy to understand, and no more than 25 words.
Provide A Bearish Overview & Risks
Understanding risks and analyzing bearish sentiment before investing helps assess a company's resilience and ability to navigate future challenges effectively.
Prompt: I want to invest in [Insert Company Name]. Can you highlight all of the risks and take a bearish approach. Ensure your explanation is as concise and easy to understand as possible.
Analyze Stocks Through The Lens Of Your Favorite Investor
Have ChatGPT analyze stocks using the investment philosophy of your favorite investor.
Prompt: Analyze [Insert Company Name] as if you were Warren Buffett. Ensure the analysis is as concise and easy to understand as possible.
Analyze Dividend History
Use ChatGPT to provide you with a quick overview and analysis of a dividend stock.
Prompt: Analyze the dividend history and sustainability of [Insert Company Name] for income-focused investors. Ensure the analysis is as concise and easy to understand as possible (no more than 1 sentence per section). Include metrics.
Discuss Implications of New Advancements
Investors should analyze and track new advancements because these can significantly impact industries and companies by altering consumer behavior, regulatory environments, and competitive landscapes.
Prompt: Discuss how advancements in [Insert New Advancement] could impact [Insert Sector] stocks such as [Insert Company Name]. The explanation should be bullet format, concise, and easy to understand.
Disclaimer:
This guide is provided for informational purposes only and is not intended to be a source of investment advice or a recommendation to engage in any investment strategy. The content within this guide is based on information available at the time of writing and may not reflect the most current market analyses or developments. Users should not rely solely on this guide for making investment decisions.
The use of ChatGPT or any other AI-based tools for investing research does not guarantee the accuracy, completeness, or timeliness of the information provided. Markets are volatile and can move quickly, and investment decisions should always be based on an individual’s own research, risk tolerance, and financial situation.
It is highly recommended that users consult with a qualified financial advisor or investment professional before making any investment decisions. The authors, contributors, and publishers of this guide disclaim any liability for any loss or damage that may arise directly or indirectly from the use of or reliance on the information contained in this guide. Investments carry risk, including the potential loss of principal, and there is no assurance that any investment strategy will be successful.
By using this guide, you acknowledge and agree to these terms and understand that you are responsible for your own investment decisions and outcomes.