# InvestSkill Cookbook
Practical examples, setup guide, and core concepts for getting the most out of InvestSkill.
π English | ηΉι«δΈζ
# Table of Contents
# 1. Setup Guide
# Prerequisites
- Claude Code installed (
npm install -g @anthropic-ai/claude-code) - An active Anthropic API key
# Install InvestSkill (2 minutes)
# Step 1: Open Claude Code
claude
# Step 2: Add the marketplace
/plugin marketplace add yennanliu/InvestSkill
# Step 3: Install the plugin
/plugin install us-stock-analysis@invest-skill
# Step 4: Verify installation
/plugin list
You should see us-stock-analysis in the list with 18 available skills.
# Quick Test
# Test with a stock you know
/us-stock-analysis:stock-eval AAPL
If you see analysis output with a BULLISH/NEUTRAL/BEARISH signal block, youβre ready to go.
# Local Development Setup
# Clone the repository
git clone https://github.com/yennanliu/InvestSkill.git
cd InvestSkill
# Open Claude Code in the project directory
claude
# Add local marketplace (use your actual path)
/plugin marketplace add /path/to/InvestSkill
# Install from local source
/plugin install us-stock-analysis@invest-skill
# Updating to the Latest Version
# Remove the existing installation
/plugin uninstall us-stock-analysis
# Re-add marketplace (refreshes to latest version)
/plugin marketplace add yennanliu/InvestSkill
# Re-install
/plugin install us-stock-analysis@invest-skill
# 2. Core Concepts
# What InvestSkill Is
InvestSkill is a collection of structured analysis prompt frameworks packaged as a Claude Code plugin. Each skill is a detailed instruction set that tells Claude Code exactly how to analyze a stock, interpret financial data, and present findings in a consistent format.
Think of each skill as a specialized analyst you can summon with a command:
| Command | What it does |
|---|---|
/stock-eval AAPL |
Holistic evaluation: quality, valuation, moat, risk |
/dcf-valuation NVDA |
Rigorous intrinsic value model with 3 scenarios |
/stock-valuation MSFT |
Multi-method valuation: DCF + comps + EV multiples |
/financial-report-analyst GOOGL 10-K |
Deep-read an annual filing, find red flags |
/research-bundle TSLA |
Run all skills in sequence, synthesize into one thesis |
# How Skills Work
Each skill is defined by a SKILL.md file containing:
- Description (frontmatter): One-line summary used by the plugin system
- Methodology: Step-by-step analysis framework with tables, scoring, and formulas
- Output format: Standardized sections Claude Code follows
- Signal block: Required at the end of every analysis
plugins/us-stock-analysis/skills/
βββ stock-eval/SKILL.md
βββ dcf-valuation/SKILL.md
βββ stock-valuation/SKILL.md β new v1.3.0
βββ financial-report-analyst/SKILL.md β new v1.3.0
βββ ... (18 skills total)
# The Signal Block
Every InvestSkill analysis ends with a standardized signal block for quick decision-making:
ββββββββββββββββββββββββββββββββββββββββββββββββ
β INVESTMENT SIGNAL β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Signal: BULLISH / NEUTRAL / BEARISH β
β Confidence: HIGH / MEDIUM / LOW β
β Horizon: SHORT / MEDIUM / LONG-TERM β
β Score: X.X / 10 β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Action: BUY / HOLD / SELL β
β Conviction: STRONG / MODERATE / WEAK β
ββββββββββββββββββββββββββββββββββββββββββββββββ
Score guide:
- 8.0β10.0 β Strongly Bullish
- 6.0β7.9 β Moderately Bullish
- 4.0β5.9 β Neutral
- 2.0β3.9 β Moderately Bearish
- 0.0β1.9 β Strongly Bearish
# Universal Prompts (Cross-AI)
Every skill is also available as a standalone prompt file in the prompts/ directory. These work with any AI assistant β not just Claude Code:
prompts/
βββ stock-eval.md
βββ dcf-valuation.md
βββ stock-valuation.md
βββ financial-report-analyst.md
βββ ... (17 files)
Use them by copying the file content into any AI chat as a system prompt.
# 3. Demo Examples & Sample Output
Note: The outputs below are representative examples showing the format and depth of analysis. Actual outputs use real-time data and will differ.
# 3.1 Stock Evaluation
Command:
/us-stock-analysis:stock-eval MSFT
Sample Output:
# US Stock Evaluation β MSFT (Microsoft Corporation)
## Company Overview
Microsoft is a diversified technology company with three major segments:
- Intelligent Cloud (Azure, server products): 43% of revenue, highest growth
- Productivity & Business Processes (Office 365, LinkedIn, Dynamics): 32%
- More Personal Computing (Windows, Xbox, Surface): 25%
Dominant moat: Azure platform lock-in, Office 365 subscription stickiness, enterprise
relationships. Switching costs are extremely high across all segments.
## Financial Health
Revenue Growth (5-yr CAGR): 15.8%
Gross Margin: 70.1% (expanding: +180 bps YoY)
Operating Margin: 44.6% (expanding: +120 bps YoY)
FCF Margin: 37.2%
Net Cash Position: $27.4B (net cash β fortress balance sheet)
## Valuation Metrics
| Metric | Current | 1Y Ago | 5Y Avg | Sector Avg |
|--------------|---------|--------|--------|------------|
| P/E (FWD) | 32.4x | 28.1x | 30.2x | 26.8x |
| EV/EBITDA | 24.1x | 21.5x | 22.8x | 18.4x |
| EV/FCF | 41.2x | 37.8x | 36.5x | 28.1x |
| Price/Sales | 12.8x | 10.9x | 11.6x | 7.2x |
Premium to sector justified by: superior margin profile, cloud growth trajectory, AI optionality (Copilot, Azure OpenAI).
## Quality Scoring
Piotroski F-Score: 8/9 (Strong β failed only on DTC/shares outstanding)
ROIC: 28.4%
WACC (estimated): 8.9%
ROIC β WACC Spread: +1,950 bps (significant value creation)
## DCF Quick Range
Base Case IV: $385β$420 per share
Bear Case IV: $295β$320 per share
Bull Case IV: $480β$530 per share
Current Price: $422.14
Margin of Safety (Base): Fairly valued β modest premium to base
## Risk Matrix
| Risk Category | Level | Key Concern |
|-------------------|-------|------------------------------------------|
| Valuation Risk | MED | Premium multiple requires continued execution |
| Business/Comp | LOW | Durable moat; AWS and Google as cloud peers |
| Financial/Leverage| LOW | Net cash, investment-grade rating |
| Regulatory/Legal | MED | EU antitrust scrutiny, Activision integration |
| Macro/Sector | MED | Enterprise IT spending sensitivity |
## Investment Thesis
Microsoft's AI-driven product suite (Copilot, Azure OpenAI) positions it to capture
disproportionate value from enterprise AI adoption. Cloud segment (Azure) growing 28%
YoY with improving margins. Valuation is fair-to-slightly-premium, but justified by
quality of business and multi-year AI tailwind.
## Bear Case
Multiple compression if Azure growth decelerates below 20%, or if AI monetization
disappoints vs. current embedded expectations. EU regulatory risk on bundling practices.
ββββββββββββββββββββββββββββββββββββββββββββββββ
β INVESTMENT SIGNAL β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Signal: BULLISH β
β Confidence: MEDIUM β
β Horizon: LONG-TERM β
β Score: 7.2 / 10 β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Action: BUY β
β Conviction: MODERATE β
ββββββββββββββββββββββββββββββββββββββββββββββββ
# 3.2 DCF Valuation
Command:
/us-stock-analysis:dcf-valuation NVDA --scenarios
Sample Output (condensed):
# DCF Valuation β NVDA (NVIDIA Corporation)
## Base Metrics (TTM)
Revenue: $122.0B FCF: $60.8B
FCF Margin: 49.8% Net Cash: $38.5B
SBC (TTM): $3.5B True FCF*: $57.3B
Shares Outstanding: 24.4B *SBC-adjusted
## WACC Calculation
Cost of Equity: Rf 4.4% + Ξ² 1.72 Γ ERP 5.5% = 13.9%
Cost of Debt (after-tax): 1.6%
Capital Structure: 99.2% equity / 0.8% debt
WACC: 13.8%
## Scenario Assumptions
| Scenario | Probability | Rev CAGR Y1-5 | Rev CAGR Y6-10 | FCF Margin Y10 | Terminal g |
|----------|-------------|---------------|----------------|----------------|------------|
| Bull | 20% | 42% | 18% | 48% | 3.0% |
| Base | 60% | 28% | 10% | 40% | 2.5% |
| Bear | 20% | 12% | 5% | 28% | 1.5% |
## Intrinsic Value Results
| Scenario | IV per Share | vs. Current ($875) | MoS |
|----------|--------------|--------------------|----------|
| Bull | $1,240 | +41.7% | Discount |
| Base | $785 | β10.3% | Premium |
| Bear | $320 | β63.4% | Premium |
| Weighted | $768 | β12.2% | Premium |
TV as % of EV (Base): 68% β within acceptable range
## Sensitivity Table (Base Scenario, $ per share)
Terminal Growth Rate
WACC 1.5% 2.0% 2.5% 3.0% 3.5%
11.0% $910 $960 $1,020 $1,090 $1,180
12.0% $830 $875 $920 $975 $1,040
13.8% $710 $745 $785 $825 $875 β Base Case
15.0% $625 $655 $685 $720 $760
16.0% $570 $595 $620 $650 $685
## Assessment
At current price of $875, NVDA trades at a 12% premium to base-case IV.
Bull case requires: AI capex cycle sustained for 5+ years, market share maintenance.
Bear case risk: cloud customer digestion, competition from AMD MI300X, custom silicon.
The weighted IV suggests modest overvaluation β position sizing discipline warranted.
ββββββββββββββββββββββββββββββββββββββββββββββββ
β INVESTMENT SIGNAL β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Signal: NEUTRAL β
β Confidence: MEDIUM β
β Horizon: LONG-TERM β
β Score: 5.8 / 10 β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Action: HOLD β
β Conviction: MODERATE β
ββββββββββββββββββββββββββββββββββββββββββββββββ
# 3.3 Financial Report Analysis
Command:
/us-stock-analysis:financial-report-analyst AAPL 10-K --section md&a
Sample Output (condensed):
# Financial Report Analysis β AAPL 10-K (FY2024)
## Document Orientation
Filing Type: 10-K Annual Report (FY ended September 28, 2024)
Auditor: Ernst & Young LLP β Unqualified Opinion
Filed: October 25, 2024 (on time)
Restatements: None
## Financial Health Dashboard
ββββββββββββββββββββββββββββ¬βββββββββββββββββββββββββββββββββββββββ
β Revenue Growth β +2.0% YoY ($391.0B) β
β Gross Margin β 46.2% (vs. prior 44.1%, +210 bps) β
β Operating Margin β 31.5% (vs. prior 29.8%, +170 bps) β
β FCF Margin β 27.8% (conversion: 108%) β
β Net Cash β $54.5B (Debt/EBITDA: 0.7x) β
β DSO β 26.1 days (vs. 27.8 days prior) β
β Management Tone β Positive β confident on Services β
ββββββββββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββ€
β Filing Quality Score β 9.2 / 10 β
β Earnings Quality Score β 8.8 / 10 β
β Balance Sheet Score β 9.5 / 10 β
ββββββββββββββββββββββββββββ΄βββββββββββββββββββββββββββββββββββββββ
## Key Positives (Bullish Signals)
β’ Services segment hit $96.2B (+13% YoY) β recurring, high-margin revenue stream growing
as % of total, structurally improving overall margins
β’ Gross margin expanded 210 bps YoY β favorable product mix (iPhone Pro uptake, Services)
β’ FCF conversion >100% β high quality earnings with minimal working capital drag
β’ DSO improved by 1.7 days β healthy receivables management
β’ Apple Intelligence (AI) mentioned 47x in MD&A β clear strategic priority with ecosystem lock-in
## Key Negatives / Red Flags
β’ China revenue declined 8% YoY ($66.9B) β geopolitical and local competition risk (RISK: HIGH)
β’ iPad and Mac segments both down YoY β hardware upgrade cycle lengthening (RISK: MEDIUM)
β’ EU Digital Markets Act compliance costs and forced App Store changes β structural margin risk (RISK: MEDIUM)
β’ SBC at $11.7B (3.0% of revenue) β elevated but manageable (RISK: LOW)
## Risk Factor Changes (vs. Prior 10-K)
NEW Risks Added:
1. Artificial Intelligence regulation β EU AI Act compliance
2. Digital Markets Act β third-party app store access in EU
ELEVATED Risks:
1. China competition β Huawei Mate series recovered significantly; language strengthened
2. App Store antitrust β new DOJ investigation language added
## Accounting Quality Score
| Criterion | Score | Notes |
|-----------------------------|-------|-----------------------------------------------|
| Revenue recognition clarity | 3/3 | Clear, ASC 606 compliant, no changes |
| Non-GAAP reconciliation | 3/3 | Minimal non-GAAP usage, clean reconciliation |
| FCF conversion rate | 3/3 | 108% β excellent |
| Working capital trends | 3/3 | DSO improving, inventory lean |
| Footnote transparency | 2/3 | China exposure disclosure remains high-level |
| Auditor opinion | 3/3 | Clean unqualified opinion |
| Related party transactions | 2/3 | Tim Cook real estate lease (minor) |
| Total | 19/21 | High quality filing |
ββββββββββββββββββββββββββββββββββββββββββββββββ
β INVESTMENT SIGNAL β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Signal: BULLISH β
β Confidence: HIGH β
β Horizon: LONG-TERM β
β Score: 7.8 / 10 β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Action: BUY β
β Conviction: MODERATE β
ββββββββββββββββββββββββββββββββββββββββββββββββ
# 3.4 Research Bundle
Command:
/us-stock-analysis:research-bundle AMZN
Sample Output (condensed):
# Research Bundle β AMZN (Amazon.com, Inc.)
## Phase 1: Business Quality Assessment
Competitor Analysis: Economic moat = WIDE (score: 8.5/10)
- AWS: 31% cloud market share, 37% operating margin, high switching costs
- Prime ecosystem: 200M+ subscribers, flywheel creates structural advantages
- Advertising: $50B+ segment growing 20%+, highest margin business
Fundamental Analysis: Financial Strength = 7.8/10
- Revenue: $590B | FCF: $54B (FCF margin: 9.1%, expanding rapidly)
- Net cash position of $47B provides strategic flexibility
Business Quality Score: 8.1/10 β Excellent
## Phase 2: Valuation Assessment
DCF Base Case IV: $208/share | Current: $224 | Premium: 7.7%
Stock-eval Comps: P/E 37x (FWD), EV/EBITDA 21x β peer-aligned
Price Target Range: $195 (Bear) β $224 (Base) β $275 (Bull)
Valuation Score: 6.2/10 β Fairly Valued with Slight Premium
## Phase 3: Market Signals
Insider: CEO Andy Jassy: no open market purchases; routine 10b5-1 sales
Institutional: 13F data shows Vanguard/BlackRock accumulating; net inflows Q3
Earnings Call: Management tone CONFIDENT; AWS acceleration emphasized;
guidance specific with revenue +8-10% next quarter
Market Signal Score: 7.5/10 β Positive
## Phase 4: Technical Setup
Price above 50-day and 200-day MA; recent breakout from consolidation
RSI: 58 (neutral momentum, not overbought)
Support: $205 | Resistance: $240
Volume: Accumulation pattern visible
Technical Setup: MODERATE β 6.0/10
## Phase 5: Risk Assessment
Short Float: 1.9% β negligible short interest
Options: Implied Vol at 31% (near 1-year low β complacent market)
Risk Profile: LOW β Score: 8.0/10
## Composite Scorecard
| Component | Weight | Sub-Score | Contribution |
|-----------------|--------|-----------|--------------|
| Business Quality| 25% | 8.1 | 2.03 |
| Valuation | 25% | 6.2 | 1.55 |
| Market Signals | 20% | 7.5 | 1.50 |
| Technical Setup | 15% | 6.0 | 0.90 |
| Risk Profile | 15% | 8.0 | 1.20 |
| COMPOSITE | 100% | 7.18/10 | |
**Interpretation: BUY (most signals positive, fair entry)**
## Investment Thesis
Amazon's AWS recovery (re-accelerating to 19% growth) combined with the highest-margin
advertising business scaling to $50B+ creates a powerful earnings leverage story over
the next 3 years. The retail segment, long a drag, is inflecting toward profitability
as fulfillment optimization matures. AWS operating income alone covers the current
enterprise value at a reasonable multiple.
## Bull Case (3 reasons)
1. AWS re-acceleration to 25%+ growth as AI workloads migrate to cloud
2. Advertising reaching 15%+ operating margins, doubling EPS contribution
3. International retail becoming cash-generative as localization matures
## Bear Case (3 risks)
1. AWS margin compression if AI compute costs outpace revenue growth
2. FTC antitrust action forcing structural changes to Prime/marketplace model
3. Consumer spending slowdown disproportionately hits discretionary ecommerce
## Entry Strategy
Ideal entry: $205β$215 (key support zone on pullback)
Current entry ($224): Acceptable for long-term; wait for better setup if possible
Position sizing: 3β5% of portfolio for high-conviction long-term hold
## Exit Strategy
Bull target: $275 (12-18 months, on AWS acceleration confirmation)
Base target: $250 (12 months)
Stop loss: $195 (below key support, thesis re-evaluation required)
ββββββββββββββββββββββββββββββββββββββββββββββββ
β INVESTMENT SIGNAL β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Signal: BULLISH β
β Confidence: MEDIUM β
β Horizon: LONG-TERM β
β Score: 7.2 / 10 β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Action: BUY β
β Conviction: MODERATE β
ββββββββββββββββββββββββββββββββββββββββββββββββ
# 3.5 Technical Analysis
Command:
/us-stock-analysis:technical-analysis TSLA --chart
Sample Output (condensed):
# Technical Analysis β TSLA (Tesla, Inc.)
## Trend Analysis
Primary Trend: BEARISH (price below 200-day MA)
Secondary Trend: NEUTRAL (consolidating above 50-day MA)
Short-Term: BULLISH (price reclaimed 20-day MA, RSI recovering)
MTF Alignment: MIXED β proceed with caution
## Key Levels
Support 1: $195 β Strong (tested 4x, accumulation zone)
Support 2: $175 β Very Strong (multi-year demand level)
Resistance: $240 β Strong (prior breakdown point, now overhead)
Resistance: $265 β Medium (50-week MA)
52W Range: $138.80 (Low) β $299.29 (High)
## Indicator Signals
| Indicator | Value | Signal | Note |
|----------------|----------|-----------|------------------------------------|
| RSI (14) | 48.2 | NEUTRAL | Mid-range, recovering from oversold|
| MACD | β2.1 | NEUTRAL | Crossover pending, histogram shrinking |
| Bollinger Bands| Mid-band | NEUTRAL | Price at mid, bandwidth contracting|
| Volume | Below avg| NEUTRAL | Declining volume on bounce (weak) |
| OBV | Declining| BEARISH | Distribution pattern visible |
| Stochastic | 42 | NEUTRAL | Mid-range, no clear signal |
## Pattern Recognition
Potential pattern: Descending triangle (bearish continuation)
Neckline: $195 β break below = target ~$155
Alternative: If $195 holds and $240 breaks, inverse H&S forming (bullish)
## Trade Setup
Conservative entry: $197β$202 (near support on confirmed volume)
Stop loss: $188 (below support β invalidates thesis)
Target 1: $240 (resistance) Risk/Reward: 1:3.5
Target 2: $265 (extended) Risk/Reward: 1:6.0
Horizon: Swing trade (4β8 weeks)
ββββββββββββββββββββββββββββββββββββββββββββββββ
β INVESTMENT SIGNAL β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Signal: NEUTRAL β
β Confidence: LOW β
β Horizon: SHORT-TERM β
β Score: 4.5 / 10 β
β βββββββββββββββββββββββββββββββββββββββββββββββ£
β Action: HOLD β
β Conviction: WEAK β
ββββββββββββββββββββββββββββββββββββββββββββββββ
# 4. Cross-AI Usage
InvestSkill works with any AI assistant. The prompts/ directory contains all 17 analysis frameworks as standalone files.
# Gemini CLI
# GEMINI.md is automatically loaded by Gemini CLI
cd /path/to/InvestSkill
gemini
# Reference a prompt directly
> @prompts/stock-valuation.md Analyze AAPL using all valuation methods
# Paste a 10-K section for analysis
> @prompts/financial-report-analyst.md
> [paste your 10-K text here]
# GitHub Copilot
The .github/copilot-instructions.md file is automatically loaded as workspace context.
# In Copilot Chat (VSCode or github.com)
Analyze NVDA using the stock-valuation framework
# Reference a specific prompt
Use the framework in @workspace /prompts/dcf-valuation.md to value MSFT
# Cursor
The .cursor/rules/invest-skill.mdc file is auto-applied in Cursor.
# Cursor AI Chat
@prompts/fundamental-analysis.md Analyze GOOGL's financial statements
# Or just ask naturally β Cursor knows the frameworks
Run a DCF valuation of AMZN using the InvestSkill methodology
# Any AI (ChatGPT, Claude.ai, etc.)
# 1. Copy the content of any prompt file
cat prompts/stock-eval.md | pbcopy # macOS
# 2. Paste into any AI chat as a system prompt or at conversation start
# 3. Ask your question
"Analyze AAPL using this framework"
# 5. Tips & Best Practices
# Getting Better Results
Be specific about the company and context:
# Good
/stock-eval NVDA # Clear ticker
/dcf-valuation MSFT --scenarios # With flag for richer output
/research-bundle AAPL --visual # Visual output for reports
# Even better β add context
/financial-report-analyst AAPL # Then paste the actual 10-K text
Use --visual for report generation:
/fundamental-analysis NVDA --visual
# Then pipe to report generator:
/report-generator --type comprehensive
Chain skills for deeper analysis:
# Step 1: Get the fundamentals
/fundamental-analysis MSFT
# Step 2: Value the business
/dcf-valuation MSFT --scenarios
# Step 3: Check competitive position
/competitor-analysis MSFT
# Step 4: Or run everything at once
/research-bundle MSFT
# Choosing the Right Skill
| Your Question | Best Skill |
|---|---|
| βIs this stock cheap or expensive?β | /dcf-valuation + /stock-valuation |
| βIs this a good business?β | /stock-eval + /competitor-analysis |
| βWhatβs in this earnings report?β | /financial-report-analyst |
| βWhat are insiders doing?β | /insider-trading |
| βIs this dividend safe?β | /dividend-analysis |
| βWhere is the stock technically?β | /technical-analysis |
| βFull deep-dive before I investβ | /research-bundle |
| βIs this a squeeze candidate?β | /short-interest |
# Interpreting Signal Scores
The 0β10 score is a composite that should be used as one input, not a definitive answer:
- Score 8+: Strong conviction. Multiple signals aligned. Still requires risk management.
- Score 6β8: Moderate conviction. Mostly positive with some concerns. Appropriate for normal position sizing.
- Score 4β6: Neutral. Mixed signals. Consider waiting for clarity or reducing position size.
- Score 2β4: Bearish lean. More concerns than positives. Avoid new long positions.
- Score < 2: Strong bear case. Multiple red flags. Consider avoiding or hedging.
# Using with Real Financial Data
For best results, provide the AI with actual data:
- Paste financial statements from the companyβs IR page
- Attach 10-K/10-Q PDFs when using the
financial-report-analystskill - Provide specific numbers (revenue, margins, share count) for DCF accuracy
- Reference earnings call transcripts with the
earnings-call-analysisskill
# Disclaimer
InvestSkill provides educational analysis frameworks only. Nothing in this project constitutes financial advice. All outputs are AI-generated analyses based on the methodologies embedded in the skills β they are not guarantees of future performance. Always consult a qualified financial advisor before making investment decisions.