Step-By-Step

It’s not as simple as asking ChatGPT - “tell me whether I should invest in Company A”. You need a plan, and you need choose the right tools.

Getting Ready

Prerequisites: ChatGPT Plus

Overall Objective: You will want answers to the key questions below (“Objectives”), as well as anything you think are relevant to help your investment decision

Installation: Install the following plugins with the GPT4 Model - “Company Transcript”, “Polygon”, “AI PDF”, “Browser”, “BrowserOp”

Phase 1 - First Hand Research

Plugins: “Company Transcript”, “Polygon”, “AI PDF”

Step 1 (Learn from Earning Transcripts): Use “Company Transcript” to get answers from recent earning calls. You can literally use prompts like “How has X performed”, and “what is A’s strategy for growth and profitability”

Step 2 (Learn from Annual / Quarterly Reports): Use “Polygon” pull data from recent annual/quarterly reports. Alternatively, you can use “AI PDF”. Get the pdf links on these company's investor relations site (e.g. AMD), and query the annual/quarterly report more directly. Similar questions apply

Note: You will probably need to ask follow-up and clarifying questions as you go along, but the idea is to have ChatGPT read these lengthy docs for you.

Phase 2 - Analyst Reports

Plugins: “Browser and “BrowserOp”

Step 3 (Get your list of articles): Use “Browser” to get a list of articles from the internet that contain analyst reports and recommendations. An example - “Find me analyst articles on AMD that give an opinion on their current performance and future prospects. Summarize them”

Step 4 (Dig into the articles): Use “BrowserOp” to actually access the relevant articles and dig into details. My favorite prompt is as follows - “Can you use BrowserOp to access these articles and collate the information across all these articles. I would like the depth and reasons behind the recommendations. Present everything in a thesis / anti-thesis format as to whether I should buy AMD stock”

Note: Follow up questions are definitely needed here as well. Try to have a conversation with ChatGPT to sense check the recommendations.

Objectives

I like to be able to get a robust and detailed answer to these questions, to help with my investment decisions. Feel free to steal them as prompts!

• Business Model: How does the company make money?

• Demand Dynamics: Are its products or services in demand, and why?

• Historical Performance: How has the company performed in the past?

• Leadership: Are talented, experienced managers in charge?

• Growth Prospects: Is the company positioned for growth and profitability?

• Financial Health: How much debt does the company have?

• Industry Analysis: How is the company’s industry doing as a whole?

• Challenges: What are the obstacles and challenges the company faces?

• Risks: Does the company face any economic, political, or cultural risks?

You also want to know these metrics. Compare the company’s metrics to the broader market, and their specific industry.

• EPS (Earnings Per Share)

• P/E Ratio (Price to Earnings Ratio)

• Price to Sales Ratio

• Debt to Equity Ratio

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