Effective Prompts For Investment Research

INTRODUCTION

Hey, it's Matt. Welcome to AI Street Markets Edition—where I use AI tools for investment analysis.

Thanks for being here!

Each Sunday, we'll explore how Large Language Models can help with investment analysis—though I should note upfront that I'm learning alongside you. And for simplicity’s sake, when I say “AI,” I’m referring to Large Language Models.

The technology is not, at least currently, as good as a seasoned investment analyst, but it now gives investors the ability to examine more companies and test more hypotheses.

My conversation with former JPMorgan AI Exec Tucker Balch sums it up best:

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For most analysis tasks people are better than AI, but people are much slower than AI. So there's the capability to scale this up. And, you can do an 80 percent quality job on a thousand companies, as opposed to a 99 percent job on 10 companies. 

 Tucker Balch PhD and current Emory professor

Understanding AI's Limitations

While AI tools might seem to 'think' like analysts, they're r…