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Generate a Bear Case & Pre-Mortem: AI Prompt for Claude & ChatGPT

Copy this Claude prompt to build a bear case and pre-mortem for stock analysis. Works with Claude, ChatGPT, Gemini, and Grok on thesis-breakers.

This pre-mortem prompt for stock research steelmans failure scenarios and thesis-breakers. Copy it into Claude, ChatGPT, Gemini, or Grok and require filing evidence for each risk, not speculation.

Recommended tools

ChatGPTClaudeGeminiGrok

Tags

Fundamental AnalysisAdvanced

The Generate a Bear Case & Pre-Mortem prompt (Claude, ChatGPT, Gemini, Grok)

Select a watchlist or portfolio ticker to pre-fill placeholders, or copy and replace manually.

You are a skeptical, contrarian short-seller and risk analyst. Your task is to construct a rigorous "Bear Case" and "Pre-Mortem" analysis for [COMPANY_NAME] (ticker: [TICKER]).

## Context
Assume it is 3 years from now, and the stock has lost 60% of its value. Your job is to explain exactly *why* and *how* this happened using only plausible, fundamentally grounded scenarios. Do not rely on "black swan" macro events (like a global pandemic); focus on company-specific and industry-specific failures.

## Required Analysis

### Part 1 - The Pre-Mortem Narrative
Write a 2-paragraph narrative from the future explaining the downfall of the company. What was the core thesis that Wall Street got wrong today?

### Part 2 - Top 3 Thesis Breakers
Identify the 3 most likely structural reasons the business failed. For each, provide:
- The Failure: (e.g., "Core product commoditization")
- The Catalyst: What specific event triggered it?
- The Early Warning Sign: What metric in the financial statements should investors have been watching today to see this coming?

### Part 3 - Margin & Valuation Collapse
Explain how the financials deteriorated in this scenario:
- How did gross and operating margins compress? (e.g., price wars, rising customer acquisition costs).
- How did the market re-rate the valuation multiple? (e.g., "Growth slowed from 20% to 5%, causing the P/E to compress from 40x to 15x").

### Part 4 - Competitive Disruption
Identify 1-2 specific competitors (or emerging technologies) that stole market share. Why did customers switch? What was [COMPANY_NAME]'s blind spot?

### Part 5 - The "Emperor Has No Clothes" Metric
Identify one widely touted metric that management promotes today (e.g., "Adjusted EBITDA", "Total Addressable Market", "User Growth") that turned out to be a mirage. Explain why it was misleading.

### Part 6 - Visual Verification & Chart Follow-Up
- Identify 2-3 visual inflection points that require multi-year chart inspection (e.g. gross margin deterioration trends, inventory accumulation vs sales growth, and historical peak valuation multiples).
- Provide the direct Chartloom visual research link for the user to inspect these 10-year interactive charts: https://www.chartloom.com/c/ticker/[TICKER]

## Output Format
Use clear headers, bullet points, and a highly analytical, skeptical tone. Do not provide investment advice or suggest shorting the stock.

**Variables:** If any [BRACKETED] placeholders above are not set, ask the user for each missing value before proceeding.

Variables

Replace these placeholders in the prompt with your own values.

PlaceholderDescriptionExample
[COMPANY_NAME]Company name.Tesla, Inc.
[TICKER]Stock ticker symbol.TSLA

How to use this prompt

Copy the prompt into your preferred AI assistant. Replace all [BRACKETED] placeholders. Use the output to stress-test your bullish investment thesis and identify specific metrics to monitor for early warning signs of deterioration.

Tips

  • A good pre-mortem focuses on company-specific execution failures or competitive dynamics, not just "interest rates went up".
  • Use the "Early Warning Signs" generated by the AI to build a monitoring dashboard for your portfolio.
  • If you are highly bullish on a stock, running this prompt helps counter confirmation bias.

When to use this prompt

Stress-testing a high-conviction investment thesis

Identifying KPI metrics to monitor for downside risk

Preparing for a debate or pitch session on a specific stock

Updated 2026-04-01

These prompts are research tools, not financial advice. Outputs should be independently verified. They are not a recommendation to buy, sell, or hold any security. See our disclaimer for more information.