How To Use AI For Investment Research

How to Use AI for Investment Research: A Beginner’s Guide

**Introduction**

Welcome back! Today, I want to share how I’ve been using AI—specifically ChatGPT—to streamline my investment research and identify potential opportunities for 2025. Whether you’re new to investing or just curious about how AI can assist, this guide will walk you through a practical approach to leveraging large language models for your portfolio.

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**Why Use AI for Investment Research?**

AI tools like ChatGPT are incredibly accessible. You don’t need to be an expert to start—just ask questions. These models excel at helping you discover what you don’t know, making them perfect for beginners and experienced investors alike.

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 **Step 1: Start with Broad Questions**

When I first started, I asked ChatGPT:

*“What are some investment strategies for 2025?”*

The response was a comprehensive list of strategies to consider:

- Diversification across asset classes

- Thematic investing

- Dividend and value investing

- Geographic diversification

- Fixed income and yield optimization

- Dollar-cost averaging

- Exposure to AI-driven investment tools

- Real estate and REITs

- Cryptocurrency and blockchain

- Defensive investments for economic uncertainty

This high-level overview gave me a roadmap for further exploration. **Pro tip:** Always start broad to identify key areas before diving deeper.

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 **Step 2: Narrow Down Your Focus**

I decided to explore **value-oriented stocks**—specifically in utilities, consumer staples, and financials. ChatGPT provided:

- **Key metrics** for identifying value stocks: P/E ratio, price-to-book ratio, dividend yield, debt levels, free cash flow, and earnings stability.

- **Sector-specific benchmarks** for what constitutes a “value stock” in each industry.

For example, a utility stock might be considered undervalued at a P/E ratio of 15, while a financial stock could have a different threshold.

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**Step 3: Identify Specific Stocks**

Next, I asked:

*“Can you help me identify utility stocks that meet these value criteria?”*

ChatGPT generated a list of five stocks, complete with their P/E ratios, dividend yields, and price-to-book ratios. To make the data easier to compare, I requested a table summarizing these metrics.

**Important note:** Always verify the numbers. While AI is powerful, it’s not infallible. Cross-check with reliable sources before making decisions.

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 **Step 4: Organize and Analyze**

ChatGPT can compile information into tables, making it easy to compare stocks side by side. I added a “performance” column to track historical returns, but I double-checked the data elsewhere to ensure accuracy.

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**Step 5: Explore Additional Tools**

I asked ChatGPT:

“How else can you help with my investments in 2025?”

The response included 12 ways AI can assist:

- Portfolio analysis and diversification

- Investment screeners

- Scenario modeling and backtesting

- Tax-efficient investing

- Goal-oriented planning

- ETF and fund analysis

For instance, I requested a **portfolio of 10 ETFs** designed to outperform the market. ChatGPT suggested a mix of broad market exposure, growth, dividends, international markets, and thematic ETFs, explaining the rationale behind each pick.

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 **Step 6: Consider Macroeconomic Factors**

Understanding the bigger picture is crucial. I asked:

"What macroeconomic factors will impact investments in 2025?”

ChatGPT highlighted:

- Global interest rates

- Inflation and economic growth

- Geopolitical tensions

- Labor markets and wage growth

- Energy and technology trends

This context helped me align my portfolio with anticipated market conditions.

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**Step 7: Customize Your Strategy**

AI can tailor advice to your specific needs. Whether you’re focused on income generation, risk management, or sector allocation, ChatGPT can help design a portfolio that fits your goals.

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 **Key Takeaways**

1. **Start broad:** Ask open-ended questions to uncover what you don’t know.

2. **Narrow down:** Focus on specific sectors or strategies that interest you.

3. **Verify data:** Always cross-check AI-generated information.

4. **Use AI as a tool:** It’s a powerful assistant, but not a replacement for due diligence.

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 **Final Thoughts**

AI like ChatGPT democratizes investment research. You don’t need to be an expert—just curious. By asking the right questions, you can quickly gather insights, organize data, and build a strategy tailored to your goals.