Using AI to Assist
Step 1: Visit the Company’s Website
The first step is to visit the website of the company you’re interested in. Most companies have an investor relations section where they publish important financial documents.
Step 2: Download Financial Statements
Once you’re on the investor relations page, download the latest 10-K (annual report) or 10-Q (quarterly report) statement. These documents contain a wealth of information about the company’s financial health and performance.
Step 3: Upload to GPT
Upload the 10-K or 10-Q statement into GPT. This AI tool can process and analyze the document quickly, saving you hours of manual reading.
Step 4: Ask Targeted Questions
Now, you can ask GPT a variety of targeted questions to get insights into the company’s financials. For example, you can inquire about:
P/E Ratio: What is the company’s price-to-earnings ratio, and how does it compare to industry peers?
Growth Percentages: What are the historical growth percentages for revenue, net income, and other key metrics? How much have they grew over a quarter/year?
Weaknesses: Where might the company be weak or facing challenges?
Cost Analysis: What are the highest cost items that are affecting the company’s profit margins?
Step 5: Understand Key Indicators
GPT can also help you understand important financial indicators like beta or market cap. You can ask questions such as:
Beta: What is the company’s beta, and what does it indicate about its volatility compared to the market?
Market Cap: What is the company’s market capitalization, and how is it calculated?
Using GPT in this way has made my due diligence process more efficient and effective. I can quickly get to the heart of a company’s financial situation and make more informed investment decisions.
By leveraging advanced AI tools like GPT-4, I’m able to streamline my research process and focus on making strategic investments. If you’re looking to optimize your stock research, I highly recommend incorporating GPT into your workflow.
