Most people use AI the same way they use a search engine: type a question, read the answer, close the tab. This is the least effective way to get value from AI. The most effective way is to use structured prompts that give the AI the context it needs to produce a genuinely useful output.
A prompt is not just a question. It is an instruction that specifies what you want, how you want it structured, and what tone or level of depth you need. The difference between a vague prompt and a precise one is the difference between a generic paragraph and a specific, actionable output you can actually use.
The ten prompts below are ones I use regularly. Copy them, adapt them to your situation, and save the ones you find most useful.
Research Prompts
Prompt 1: Business Model Summary
Explain the business model of [Company Name] in plain language. Cover: how they make money, who their customers are, what makes them different from competitors, and the biggest threat to their business. No marketing language. Be direct.
Prompt 2: Competitive Position
Who are the main competitors of [Company Name]? For each competitor, tell me: what they do better than [Company Name], what [Company Name] does better than them, and how the competitive landscape has shifted in the last two to three years. Give me a clear verdict on whether [Company Name] has a durable competitive advantage.
Prompt 3: Sector Overview
Give me an overview of the [sector name] sector. Cover: the key drivers of growth, the main risks facing the sector, which companies are gaining market share and which are losing it, and how AI or technology is changing the sector dynamics. Focus on what an investor needs to know, not a general industry description.
Portfolio Prompts
Prompt 4: Portfolio Overlap Check
I hold the following funds and stocks:
[list your holdings]
Identify any significant overlap between these holdings. Which ones are likely holding the same underlying companies? Where am I more concentrated than I probably realise? What sectors or geographies dominate my portfolio?
Prompt 5: Rebalancing Decision
My target asset allocation is [X% equity, Y% debt, Z% other]. My current allocation has drifted to [current percentages]. Should I rebalance now or let it drift further? What are the arguments for and against rebalancing at this point? What are the tax and cost implications I should consider?
Risk and Decision Prompts
Prompt 6: Risk Assessment
What are the three most important risks for [Company Name] as an investment right now? For each risk: explain what it is, why it matters for the business, how serious you think it is (low, medium, high), and whether management has a credible response. Be honest rather than reassuring.
Prompt 7: Investment Thesis Builder
Help me build a simple investment thesis for [Company Name]. Structure it as:
Bull case: the three strongest reasons to invest.
Bear case: the three strongest reasons not to invest.
Key question: the one thing I need to figure out before deciding.
Verdict: is this worth deeper research? Yes, no, or it depends on what?
Prompt 8: Decision Stress Test
I am considering [describe your investment decision]. Before I decide, stress test this for me. What are the three scenarios in which this decision turns out to be a mistake? For each scenario, how likely is it and what would I do if it happened? What am I not thinking about that I should be?
Learning Prompts
Prompt 9: Concept Explainer
Explain [financial concept, e.g. price-to-earnings ratio] in simple terms. Then give me a concrete example using a real company. Then tell me: what does a high number mean? What does a low number mean? When is this metric useful and when is it misleading? Assume I have basic financial knowledge but am not an expert.
Prompt 10: Market Context
I am reading about [market event or trend, e.g. rising interest rates]. Explain what this actually means for investors in plain terms. How does it typically affect equity markets, bond markets, and specific sectors? What should I be thinking about for my portfolio given this context? What have investors historically done wrong in this type of environment?
How to Use These Prompts
Do not use these prompts passively. Read the output critically. If something sounds too vague, ask the AI to be more specific. If a claim seems strong, ask it to give you evidence or admit what it does not know. The best AI conversations are iterative, not one-shot.
Also keep in mind that AI has a training cutoff. The research prompts work well for understanding business models, competitive dynamics, and financial concepts. For current prices, recent earnings, or news from the past few months, verify using a live source. Use AI for reasoning. Use live data for facts.
