Analyze [COMPANY] as a potential investment using the information in [SOURCE MATERIAL], with an investment horizon of [TIME HORIZON] and a decision context of [INVESTMENT GOAL]. My risk constraints are [RISK LIMITS]. First, state the date through which the supplied information is current. Do not treat market prices, earnings estimates, ownership data, or news as current unless I provide them or you can cite a dated source. If a required input is missing, ask up to 3 clarifying questions before proceeding. Produce an investment-research memo, not personalized financial advice, in this order: 1. One-sentence business description, primary revenue drivers, customer concentration or cyclicality, and the specific thesis to test.
2. Financial snapshot: revenue growth, gross margin, operating margin, free cash flow, net debt or cash, share count trend, and return on invested capital where the source supports it. Show period, units, and calculations. 3. Competitive position: market structure, switching costs, pricing power, credible competitors, and what could weaken the moat. 4. Valuation: calculate at least two appropriate methods from the supplied data, such as P/E, EV/EBITDA, EV/sales, or a simple discounted cash-flow sensitivity. State every assumption and show a bear, base, and bull case; do not fabricate a target price. 5. Catalysts, risks, and disconfirming evidence, ranked by likely materiality. 6. A conditional conclusion: what evidence would support buying, waiting, reducing, or avoiding the position. Before answering, self-check that every number has a source, date, unit, or visible calculation. Flag missing data, incomparable periods, adjusted metrics, and claims that cannot be verified from my materials. This is educational research; I will make decisions with my own judgment or a licensed professional.
Fill in
| Placeholder | What to enter | Example |
|---|---|---|
| [COMPANY] | Enter the company name and ticker, if it has one. | Acme Creative Software Inc. (fictional ticker ACSW) |
| [SOURCE MATERIAL] | Paste filings, earnings releases, investor materials, price data, and dated research you want analyzed. | Acme Creative FY2025 10-K excerpts, Q2 2026 earnings release, and a table of closing prices through September 20, 2026. |
| [TIME HORIZON] | Enter the period you expect to hold the investment, such as 12 months or five years. | Three to five years |
| [INVESTMENT GOAL] | Describe the decision you are considering, such as initiating a long-term position or comparing two stocks. | Decide whether to begin a small long-term position after a recent price decline. |
| [RISK LIMITS] | State constraints such as maximum position size, volatility tolerance, income needs, or industries to avoid. | Maximum 4% portfolio position; avoid businesses with rising net debt or unclear free-cash-flow conversion. |
How to use
- Paste the company name, dated source material, horizon, goal, and constraints into the prompt.
- Check that the memo labels each period and currency and shows calculations for every valuation multiple.
- Compare the bear-case assumptions with the company’s filings instead of accepting the conclusion as a recommendation.
- Follow up with: “Rebuild the valuation using only unadjusted GAAP operating income and explain each difference.”
Variations
Compare two stocks
Use this when choosing between two companies in the same industry.
Compare [COMPANY A] and [COMPANY B] for a [TIME HORIZON] investment using [SOURCE MATERIAL]. Produce a side-by-side table for revenue growth, margins, free cash flow, balance sheet, valuation multiples, and three company-specific risks. Explain which comparisons are distorted by different fiscal years, accounting, or business mix. Give conditional reasons to prefer each company, not a blanket recommendation. Ask up to 3 questions only if essential inputs are missing, and flag every unsupported figure.
Earnings review
Use this after an earnings release to separate results from market narrative.
Review [COMPANY]’s [QUARTER] earnings release, call transcript, and prior guidance in [MATERIALS]. Produce a one-page earnings brief: reported versus expected results only where estimates are supplied, guidance changes, segment drivers, cash-flow and working-capital signals, management claims requiring follow-up, and questions for the next quarter. Quote no figures without a source and label non-GAAP measures. Ask up to 3 questions only for missing required materials.
Portfolio position memo
Use this when deciding how a current holding fits your portfolio.
Assess my existing [COMPANY] position using [POSITION DETAILS], [PORTFOLIO CONTEXT], and [DATED RESEARCH]. Produce a decision memo covering thesis status, concentration and correlation concerns, downside scenarios, tax or liquidity considerations I should ask a professional about, and observable triggers to add, hold, trim, or exit. Do not give personalized trade instructions or invent prices. Ask up to 3 clarifying questions if a required input is absent; flag assumptions separately.
Tips
- Use the primary filing and earnings release for operating metrics; summaries can omit share dilution, lease obligations, and segment changes.
- Keep fiscal periods aligned before comparing growth or valuation multiples, especially when peers have different year ends.
- Treat adjusted EBITDA and adjusted earnings as management-defined measures until you reconcile them to GAAP figures.
- A useful thesis has a measurable disconfirming signal, such as falling renewal rates, margin compression, or net-debt growth.
FAQ
Can AI tell me which stock to buy?
It can organize research and calculate scenarios, but it cannot replace your judgment, up-to-date market data, or licensed investment advice.
What sources should I paste into the prompt?
Start with the latest annual and quarterly filing, earnings release, investor presentation, and any dated consensus or price data you want used.
Why ask for bear, base, and bull cases?
A single valuation hides its assumptions. Cases make revenue, margin, multiple, and discount-rate assumptions visible.