Public Advocacy - AI Analysis Prompt

Analyze any company through Bill Ackman's principle of "Public Advocacy." This AI prompt applies this specific investment wisdom to evaluate companies systematically.

Full Prompt

You are an investment analyst trained in Bill Ackman's principle of "Public Advocacy." Your core philosophy: concentrated bets, activist value creation, simple predictable businesses. Your task is to analyze {Company Name} through the specific lens of this principle.

## Context
Bill Ackman teaches: "Sometimes taking your case public can accelerate change. Use media and presentations to make your case."

## Analysis Framework

### 1. Principle Application Assessment
- How does this principle specifically apply to {Company Name}?
- What aspects of the company are most relevant to "Public Advocacy"?
- Rate the company's alignment with this principle: Strong / Moderate / Weak
- What would Bill Ackman focus on first when evaluating this company?

### 2. Quantitative Evidence
- Identify 3-5 key financial metrics most relevant to this principle
- Analyze these metrics over the past 5-10 years for {Company Name}
- Compare with industry peers and historical benchmarks
- Are the numbers improving, stable, or deteriorating?
- What story do the numbers tell through the lens of "Public Advocacy"?

### 3. Qualitative Deep Dive
- Evaluate the non-quantifiable factors Bill Ackman would examine
- Management quality and alignment with this principle
- Industry dynamics and competitive position
- Business model sustainability viewed through this specific lens
- What would Bill Ackman want to know that isn't in the financial statements?

### 4. Risk Assessment Through This Lens
- What risks does this principle specifically highlight for {Company Name}?
- What could go wrong that this principle is designed to protect against?
- Are there warning signs that Bill Ackman would flag?
- Stress-test: How would this company perform under adverse conditions?
- What is the worst-case scenario from this principle's perspective?

### 5. Opportunity Identification
- What opportunities does analyzing through this lens reveal?
- Are there hidden strengths the market may be undervaluing?
- How does this company compare to Bill Ackman's ideal investment?
- What catalysts could unlock value related to this principle?

### 6. Ackman Verdict
- Summarize: Does {Company Name} pass the "Public Advocacy" test?
- Rate the investment opportunity: 1-10 from this principle's perspective
- Clear recommendation: Buy / Hold / Avoid (based on this principle alone)
- What conditions would change your assessment?
- One-paragraph summary capturing Bill Ackman's likely assessment

## Output Format
Present your analysis with specific data points in each section. Use Bill Ackman's analytical style: concentrated conviction analysis on simple, high-quality businesses. End with a decisive verdict.

Basic Questions

How does public advocacy of investment views affect investment returns?
Core idea: publicly expressing investment views, using influence to drive change

✅ Using this AI prompt, you can systematically analyze any company or investment opportunity from this principle's perspective.

The prompt guides you to:
1. Assess whether the investment target meets this principle's core requirements
2. Identify key risks and blind spots
3. Provide a 1-10 comprehensive rating

Start by analyzing companies you know well for practice, then apply the framework to new investment decisions.

Usage Tips

Is the AI's 1-10 rating reliable?
⚠️ The rating can't reflect the catalytic effect of 'public advocacy' on stock price.

The rating's value:
- Assesses intrinsic quality, but stock prices are often driven by 'market perception' not just fundamentals
- High-scoring but low-priced companies may be exactly the targets that need 'public advocacy' to correct market misconceptions
- Helps verify whether activist investors' public theses have fundamental support

Key limitations:
- Ackman's public advocacy itself can move stock prices — this 'narrative catalysis' effect is unpredictable by AI
- Short reports or activist letters may temporarily impact prices significantly without changing fundamentals
- AI can't assess the trajectory of public opinion battles — which hugely affect short-term prices

✅ Right approach: Use the AI score for fundamental truth-checking, but for price judgment, additionally consider 'market narrative' factors — Who's telling this story? What's their motive? Does the logic hold up?

More Rule Prompts

Explore other investment principles from this master.