Two AI prompts that explain a stock before you buy it
The ugly stock numbers are technically disclosed and practically invisible. Here are the exact prompts I paste before buying a single share, including the one that makes AI argue against the investment. Plus the five terms to search in the 10-K yourself.
ChatGPT/Kim Komando
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I’m at a dinner party when someone leans in and whispers, “Buy this stock. It’s the next big thing. It’s got AI, blockchain and data centers all rolled up into one.” I nod thoughtfully, open my brokerage app and realize I have no idea how the company stays in business.
This is how bagholders are born. The average retail investor trails the market by roughly 1.2 percentage points a year, usually because we trade too much or skip the homework. On a $50,000 portfolio, that’s $600 annually. Don’t get me started on meme-stock trading.
🔍 Make AI read Page 42
The uncomfortable details rarely appear in the investor presentation with the tasteful rocket graphic. They’re buried inside earnings reports, 10-Q filings and transcripts.
Before buying anything, I’d paste the company name, earnings summary or filing into ChatGPT, Claude, Gemini or Grok:
Act as a skeptical hedge fund analyst. Analyze [Company] in [Industry] using its latest available earnings report or 10-Q.
Explain the business model in two sentences like I’m 12. Then:
- List its top 3 expenses.
- Compare its debt-to-equity ratio with [Industry] peers.
- Show its free cash flow trend for the last 3 years.
- Flag risks buried in the latest earnings call transcript.
- Give me 5 questions I must answer before buying one share.
Cite the filing, page or transcript section for every factual claim. Separate confirmed facts from assumptions.
📋 Invite the pessimist
Make the bot argue against the investment:
What would a short seller say about [Company] and its industry? Identify the strongest bearish argument, the evidence supporting it and what evidence would prove it wrong. Tell me exactly what terms to search in the latest 10-K.
Fact-check the ugliest points yourself. Ctrl+F for debt, liquidity, dilution, going concern and customer concentration.
Thirty seconds here can prevent an $8,000 stock tip from becoming a $1,600 tax-loss souvenir.
AI can’t see insider information or predict interest rates, recessions or prices. Use it to clarify the business, not bless the purchase. I also never paste brokerage statements or account numbers.
📩 Send this to the friend who texts you, “Should I buy this stock?” five minutes after reading about it on X.
