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Module 6 Module 6 - AI for Investments illustration

Your AI-Powered Investment Lab

Turn Claude into your personal financial analyst with ready-to-use prompt templates.

What If You Had a Financial Analyst on Call 24/7?

Professional investors pay $200,000/year for analysts who build financial models, research companies, analyze news, and compare investment options.

You have something similar — for free. It's just a matter of knowing how to use it.

The Big Idea: AI Amplifies Your Thinking

AI won't tell you what stocks to buy. Anyone who says otherwise is lying to you.

But AI WILL:

  • Explain business models you don't understand
  • Build spreadsheet models 10x faster than you could
  • Find information that would take hours to research
  • Stress-test your assumptions

Your curiosity + AI's speed = Superpower

Prompt Engineering for Finance

Rule 1: Be Specific About What You Want

Bad: "Tell me about Nike"

Good: "Explain Nike's business model like I'm 13. Focus on: how they make money, their main competitive advantages, and what could threaten them in 10 years."

Rule 2: Ask for the Format You Need

Bad: "Build me a DCF model"

Good: "Help me build a simple DCF model for Roblox in Google Sheets. Format it as a table with clear rows and columns I can copy-paste."

Rule 3: Demand Intellectual Honesty

Bad: "Should I buy Epic Games stock?"

Good: "What are the strongest arguments for AND against investing in Epic Games? Rate your confidence 1-10 for each argument."

Rule 4: Use Follow-Ups to Go Deeper

Start broad, then drill down:

  1. "Explain how Discord makes money"
  2. "You mentioned Nitro subscriptions. What percentage of users pay for Nitro?"
  3. "That seems low. Why would Discord be worth $15B with that conversion rate?"
  4. "If conversion doubled, what would Discord be worth?"

Your Toolkit: 6 Ready-to-Use Prompts

1. Business Model Explainer

Explain [Company]'s business model like I'm 13.

Cover:
1. How do they actually make money? (Not their mission statement - actual cash in the door)
2. What's their "unfair advantage" that competitors can't easily copy?
3. Who are their biggest customers?
4. What could kill this business in 10 years?
5. One thing that would make you want to invest in them
6. One thing that would scare you away

Be specific with numbers when you can find them.

2. Key Metrics Finder

For [Company], find and explain the 5 most important numbers an investor should know.

For each metric:
- The actual number (most recent)
- What it means in plain English
- What "good" looks like for this type of company
- How this company compares

Then tell me: Which ONE number would you watch most closely? Why?

3. Simple DCF Builder

Help me build a simple 5-year DCF model for [Company].

Format it as a table I can paste into Google Sheets.

Include:
- Current free cash flow (find it or estimate it - explain your source)
- Year 1-5 growth rates with reasoning for each year
- Discount rate with explanation
- Terminal value calculation
- Total valuation

After the model, answer:
1. Which assumption matters most?
2. If you're wrong about that assumption by 20%, how does the value change?
3. What would make you more/less confident in this model?

4. Competitor Comparison

Compare [Company A] vs [Company B] as long-term investments.

Create a comparison table with:
- Revenue and profit (current)
- Growth rates (last 3 years and expected)
- Key multiples (P/E, EV/Revenue)
- Main competitive advantages
- Biggest risks

Then give me your verdict:
- Which would you pick for a 10-year hold?
- What would have to change for you to switch your answer?
- What's the one thing that makes this a hard decision?

5. News Impact Analyzer

Here's a headline: "[Insert headline]"

Analyze this for [Company]:
1. Is this actually new information, or already expected?
2. Quantify the impact: How does this change expected revenue/profit? (Use numbers)
3. Is this temporary or permanent?
4. What would need to be true for this to be GOOD news? BAD news?
5. On a scale of -10 to +10, how should this affect the stock price?
6. What additional information would you want before acting on this?

6. Early Trend Spotter

What are 3 companies or brands that:
- Most adults (35+) don't know yet
- Teenagers are obsessed with
- Could be valuable investments in 5 years

For each one:
1. What they do and why teens love it
2. How they make money
3. Current valuation or size (if known)
4. Why this could be a huge opportunity
5. Why this might be a trap
6. How you'd invest if you wanted to (public stock? Wait for IPO?)

Capstone Project: Your €1,000 Investment Pitch

You have €1,000 of imaginary money. Pick ONE stock to hold for 5 years.

Using everything you've learned and AI tools, create a 1-page pitch including:

  1. The Business (3-4 sentences): What do they do and why do people love them?
  2. The Numbers: 3 key metrics that matter for this business
  3. The Valuation: Your estimate of fair value (show your DCF or multiples work)
  4. The Risks: What could go wrong? What would make you sell?
  5. The Verdict: Buy / Hold / Avoid + Confidence level (High/Medium/Low)

Ongoing Practice

Every week, pick ONE company you're curious about. Run through this sequence:

  • Monday: "Explain [Company]'s business model like I'm 13."
  • Wednesday: "Build me a simple DCF for [Company] with your best assumptions."
  • Friday: "What happened to [Company] this week in the news? Should I care?"

After 3 months, you'll understand 12 businesses better than 99% of adults.

Dinner Table Discussion

"If you had €500 to invest in one stock for 10 years, what would you pick and why?"

Share your research. Ask your family for their picks. Compare reasoning. This isn't about being "right" — it's about thinking through decisions with real stakes.

The Final Investor Takeaway

You now have a complete toolkit:

  1. Understanding value — Price ≠ value. Your job is to find the gap.
  2. Time value of money — Future cash is worth less than present cash. Always discount.
  3. DCF modeling — Companies are worth their future cash flows, discounted back.
  4. Multiples — Shortcuts for comparison, but dangerous if misused.
  5. News analysis — Only react if it changes expected cash flows. Mostly, do nothing.
  6. AI leverage — Amplify your thinking with the right prompts.

The professional secret: These are the exact tools that real analysts use. They just have more practice.

Start small. Build your watchlist. Track your thinking. Be patient.

In 10 years, you might be writing much bigger checks — and you'll know exactly why.

Congratulations!

You now know more about company valuation than most adults.

"The stock market is a device for transferring money from the impatient to the patient." — Warren Buffett

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