Investment Research

Ask ChatGPT to analyze a stock and it will, without hesitation, give you an answer, a valuation, a summary of the balance sheet, a view on whether a company looks cheap or expensive. It reads confidently, it's well-written, and it's available instantly. For a growing number of investors, that's become the first stop before making a decision. The problem isn't that ChatGPT can't talk about stocks. It's that the confidence of the answer and the reliability of the answer are two

A falling price is not the same thing as a cheap stock. A stock that has dropped 30% can still be overvalued, that's often exactly what's happening when the drop is the market catching up to a valuation that was already stretched, or reacting to a genuine structural change in the business, like a fading moat, a shrinking market, or a broken growth story. But a 30% drop doesn't always mean anything changed about the business at all! Sometimes it's simply Mr. Market overreacti

Most investors analyze a stock backwards. They start with the price chart, then the growth story, then — if there's time left — a glance at the balance sheet. By the time they get around to asking "can I actually trust these numbers?", they've already fallen in love with the idea of owning the stock.