60 ChatGPT Prompts to Help You Outperform the Average Investor
Original ChatGPT Prompts That Empower the AI-Driven Investor
Dear CMQ Investors,
My name is Chris Franco. I am a long-term investor and a ChatGPT addict.
I am excited to share 60 original ChatGPT Prompts that I crafted to help you (and me) outperform the average investor. I organized the 60 prompts into buckets that are inspired by the wisdom of Charlie Munger and Warren Buffett. I hope you find them useful.
Note: GPT-4 will produce the best responses, but the prompts still work with GPT-3.5. Just copy and paste.
8 Prompts for Avoiding Mistakes
It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes. —Warren Buffett
Pretend you are Isaac Newton and you just lost a major portion of your wealth in the South Sea Bubble. Tell me how you got swept up in that mania. What lessons should I learn from you?
Pretend you are a Stock Market Historian with extensive knowledge dating back to 1611. Summarize the most important events in stock market history and provide actionable takeaways for each of them and specific mistakes that I should avoid making.
Explain the impact of high fees and expenses on investment returns and emphasize the importance of selecting low-cost investment options to maximize long-term wealth.
You are a Hollywood producer who is pitching a movie idea based on The South Sea Bubble of 1720. It will be set in modern times, but will parallel The South Sea Bubble of 1720 with precision. Tell me about the movie.
Based on the key takeaways and lessons learned from Tulip Mania, create a checklist for individual investors to use that I can create in Google Sheets. The response must also explain why each item on the checklist is based on the key takeaways and lessons learned from Tulip Mania.
Based on the key takeaways and lessons learned from South Sea Bubble, create a checklist for individual investors to use that I can create in Google Sheets. The response must also explain why each item on the checklist is based on the key takeaways and lessons learned from South Sea Bubble.
Based on the key takeaways and lessons learned from the Wall Street Crash of 1929, create a checklist for individual investors to use that I can create in Google Sheets. The response must also explain why each item on the checklist is based on the key takeaways and lessons learned from the Wall Street Crash of 1929.
Based on the key takeaways and lessons learned from the Dotcom Bubble, create a checklist for individual investors to use that I can create in Google Sheets. The response must also explain why each item on the checklist is based on the key takeaways and lessons learned from the Dotcom Bubble.
10 Prompts for Learning From Books
In my whole life, I have known no wise people who didn't read all the time. —Charlie Munger
Provide a concise summary and critical analysis of The Intelligent Investor, focusing on its main arguments, supporting evidence, and overall contribution to the investment community.
Summarize the essential teachings and core arguments from Philip Fisher's 'Common Stocks and Uncommon Profits.' Based on these, provide practical steps or immediate strategies that can be integrated into my current investment approach for enhanced decision-making.
Provide a comprehensive summary and critical review of "Thinking, Fast and Slow" by Daniel Kahneman, focusing on its implications for investors.
Summarize the key principles and primary arguments from “The General Theory of Employment, Interest, and Money” by John Maynard Keynes. Based on these, provide immediate strategies or practical steps that can be incorporated into my current economic understanding and decision-making process.
Provide a concise summary of the key insights and main arguments from Benjamin Graham's 'The Intelligent Investor.' Based on these insights, offer actionable steps or strategies that can be implemented immediately into my investment approach.
Outline the essential points and main arguments from 'A Random Walk Down Wall Street' by Burton Malkiel. Based on these, offer practical strategies or steps that I can apply instantly in my investment decision-making.
Provide a brief summary of the key insights and main arguments from John C. Bogle's 'The Little Book of Common Sense Investing.' Based on these insights, give practical recommendations or immediate strategies that can be implemented in my investment practice.
Provide a concise summary of the key insights and main arguments from 'The Essays of Warren Buffett: Lessons for Corporate America.' Based on these insights, offer actionable steps or strategies that can be immediately implemented.
Summarize the key principles and main arguments from Seth A. Klarman's 'Margin of Safety.' Based on these, provide immediate strategies or practical steps that can be incorporated into my risk-averse investment approach.
Summarize the main teachings and core arguments from Philip Fisher's 'Paths to Wealth Through Common Stocks.' Based on these, give practical recommendations or strategies that can be directly integrated into my current stock investment practices.
Summarize the key principles and main arguments from Howard Marks’ 'The Most Important Thing.' Based on these, provide immediate strategies or practical steps that can be incorporated into my risk-averse investment approach.
14 Prompts to Combat Psychological Biases
Of all the models that people ought to have in useful form and don’t, perhaps the most important lie in the area of psychology. —Charlie Munger
Synthesize the key principles of behavioral finance and their implications for investment decision-making, providing practical strategies to overcome cognitive biases.
What are some practical techniques investors can use to stay disciplined and avoid being swayed by emotions during times of market turbulence?
What strategies can investors employ to limit the influence of media noise and sensationalized market news on their investment decisions during turbulent times?
Analyze the impact of overconfidence bias on portfolio performance, illustrating with real-world examples, and offering tips on how to recognize and counter this bias.
Could you please evaluate the effects of overconfidence bias on investment portfolio performance, using practical real-world scenarios as illustrations? In addition, provide actionable strategies for identifying this bias in one's investment approach and detailed methods to mitigate its potential negative effects.
How can findings from the field of behavioral economics be used to enhance our long-term investment strategies?
Explain the concept of confirmation bias and its impact on investment outcomes, offering specific techniques to encourage open-mindedness and objective analysis.
Explain the concept of availability bias and its impact on investment outcomes, offering specific techniques to seek out diverse information sources and avoid over-reliance on easily accessible data.
Explain the concept of overconfidence bias and its impact on investment outcomes, offering specific techniques to encourage realistic self-assessment and consider a range of potential outcomes.
Explain the concept of loss aversion bias and its impact on investment outcomes, offering specific techniques to objectively assess risk and potential rewards, rather than being overly influenced by a fear of losses.
Explain the concept of confirmation bias and its impact on investment outcomes, offering specific techniques to actively seek out opposing viewpoints and challenge one's own beliefs and assumptions.
Explain the concept of authority bias and its impact on investment outcomes, offering specific techniques to conduct independent research, consider multiple expert opinions, and avoid blindly following the recommendations of a single authority figure.
Illustrate real-world examples where confirmation bias led to poor investment decisions and discuss lessons learned to foster a more balanced approach.
Identify common psychological pitfalls in decision making that can affect investment strategies and provide methods to mitigate them.
10 Prompts for Stock Research
I can’t be an intelligent owner of a business unless I know what all the other businesses in that industry are doing. And so, I try to get that information out of a report. —Warren Buffett
How can investors analyze and interpret financial statements to make well-informed investment decisions?
What specific information in a company's 10-K report helps assess its growth prospects and market position?
What are the crucial considerations when assessing the industry backdrop for a company? List them and provide real-world examples.
How does reviewing a company's disclosed research and development (R&D) expenditures and innovation initiatives in a 10-K report help evaluate its focus on long-term growth and competitiveness?
What key indicators should investors look for when evaluating the competence and track record of a company's management team?
How does analyzing the details of acquisitions, divestitures, or joint ventures disclosed in a 10-K report provide insights into a company's strategic moves and future prospects?
What valuable insights can investors gain by comparing the financial ratios and performance metrics of a company with its industry peers?
How can investors effectively evaluate a company's management team and corporate governance practices before investing?
Outline a step-by-step process for identifying fundamentally strong companies with robust balance sheets and attractive valuations in market downturns.
What are the key considerations when evaluating thematic ETFs for long-term investment?
5 Prompts for Avoiding Frauds
Where you have complexity, by nature you can have fraud and mistakes.
—Charlie Munger
What are common techniques used to manipulate earnings reports, and how can investors detect them?
How does a thorough review of footnotes and disclosures in financial statements help uncover potential accounting irregularities?
What specific red flags should investors watch for when reading 10-K reports and assessing a company's management team?
How does analyzing cash flow statements help uncover discrepancies or manipulation in reported earnings?
What are the crucial considerations when evaluating the quality of earnings reports and identifying potential red flags or accounting irregularities?
12 Bonus Prompts: Learn From Legends
Pretend you are Warren Buffett, and answer this question in a simple, actionable way: How can an average investor utilize the concept of "economic moats" for better stock selection?
Pretend you are Charlie Munger, and answer this question in a simple, actionable way: How can an average investor utilize the concept of "multidisciplinary thinking" for improved decision making in their investments?
Pretend you are Peter Lynch, and an interested investor asks you to explain how to practically use the concept of "growth investing" in their stock selection strategy.
Pretend you are Nassim Nicholas Taleb, and a curious investor asks you how to practically integrate the concept of "antifragility" into their investment strategy.
Pretend you are Warren Buffett, and an investor asks for your advice on how to utilize the concept of "competitive advantage" in their stock analysis for better investment decisions.
Pretend you are Peter Lynch, and answer this question in a simple, actionable way: How can an average investor utilize the concept of "invest in what you know" for better stock selection?
Pretend you are Benjamin Graham, and answer this question in a simple, actionable way: How can an average investor utilize the concept of "margin of safety" for better stock selection?
Pretend you are Charlie Munger, and answer this question in a simple, actionable way: How can an average investor utilize the concept of "mental models" for better stock selection?
Pretend you are Ray Dalio, and answer this question in a simple, actionable way: How can an average investor utilize the concept of "risk parity" for better asset allocation?
Pretend you are Benjamin Graham, and a student asks you to provide a specific, actionable, and easy-to-understand answer to the following question: How can an average investor use the concept of "Mr. Market" to make better investment decisions?
Pretend you are Charlie Munger, and answer this question in a simple, actionable way: How can an average investor use the concept of "opportunity cost" in their investment decision-making process?
Pretend you are Phil Fisher and write a simple, detailed explanation of The Scuttlebutt technique that I can use to take immediate action and improve my investment decision-making.
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