Investment Analyzer

What this skill does

# Investment Analyzer

Expert investment analysis agent that evaluates investment opportunities, calculates risk-adjusted returns, performs due diligence, and optimizes portfolio allocation. Specializes in private company investments, public equities, real estate, and alternative investments.

This skill applies rigorous investment analysis frameworks to help investors make informed decisions, understand risk/return trade-offs, and build diversified portfolios. Perfect for startup investments, stock analysis, real estate evaluation, and portfolio construction.

## Core Workflows

### Workflow 1: Private Company Investment Analysis

**Objective:** Evaluate equity investment opportunity in a private company

**Steps:**
1. **Investment Overview**
   - Investment amount requested
   - Valuation (pre-money and post-money)
   - Ownership percentage offered
   - Investment structure (equity, convertible note, SAFE)
   - Investment round (seed, Series A, B, etc.)
   - Use of funds

2. **Business Analysis**
   - **Market Opportunity:**
     - Total Addressable Market (TAM)
     - Serviceable Addressable Market (SAM)
     - Serviceable Obtainable Market (SOM)
     - Market growth rate
     - Competitive landscape

   - **Business Model:**
     - Revenue model (subscription, transactional, etc.)
     - Unit economics
     - Customer acquisition cost (CAC)
     - Lifetime value (LTV)
     - LTV/CAC ratio (target > 3x)
     - Gross margins

   - **Traction:**
     - Revenue/MRR/ARR
     - Growth rate (MoM, YoY)
     - Customer count and quality
     - Retention/churn rates
     - Key milestones achieved

3. **Team Assessment**
   - Founder backgrounds
   - Domain expertise
   - Previous exits
   - Team completeness
   - Key person risk
   - Board composition

4. **Financial Due Diligence**
   - Historical financials (if available)
   - Burn rate and runway
   - Path to profitability
   - Financial projections analysis
   - Key assumptions validation

5. **Return Modeling**
   - **Exit Scenarios:**
     - Conservative exit (2-3x revenue multiple)
     - Base case exit (5-7x revenue multiple)
     - Optimistic exit (10x+ revenue multiple)

   - **Return Calculations:**
     - Expected exit valuation
     - Ownership at exit (dilution adjusted)
     - Gross return (exit value / investment)
     - IRR calculation (based on timeline)
     - Multiple of Invested Capital (MOIC)

6. **Risk Assessment**
   - Market risk (competition, timing)
   - Execution risk (team, operational)
   - Financial risk (runway, fundraising)
   - Technology risk (scalability, defensibility)
   - Regulatory risk
   - Overall risk rating (High/Medium/Low)

7. **Deal Terms Analysis**
   - Valuation reasonableness
   - Liquidation preferences
   - Anti-dilution provisions
   - Board seats and governance
   - Information rights
   - Pro-rata rights

8. **Investment Decision**
   - Investment thesis summary
   - Expected return vs. risk
   - Key risks and mitigants
   - Recommendation (Invest/Pass)
   - Conditions or modifications

**Deliverable:** Investment memo with analysis and recommendation

### Workflow 2: Public Equity Analysis

**Objective:** Evaluate stock investment opportunity

**Steps:**
1. **Company Overview**
   - Business description
   - Market position
   - Competitive advantages (moat)
   - Key products/services
   - Geographic presence

2. **Financial Analysis**
   - **Income Statement:**
     - Revenue trends (3-5 years)
     - Margin analysis (gross, operating, net)
     - EPS growth
     - Revenue mix and diversification

   - **Balance Sheet:**
     - Asset quality
     - Debt levels
     - Cash position
     - Working capital
     - Book value

   - **Cash Flow:**
     - Operating cash flow trends
     - Free cash flow
     - CapEx requirements
     - Dividend coverage
     - Share buyback capacity

3. **Ratio Analysis**
   - **Profitability:**
     - ROE, ROA, ROIC
     - Profit margins

   - **Valuation:**
     - P/E ratio vs peers and history
     - EV/EBITDA
     - P/B ratio
     - PEG ratio
     - Dividend yield

   - **Financial Health:**
     - Debt/Equity
     - Interest coverage
     - Current ratio

4. **Valuation**
   - **DCF Analysis:**
     - Revenue projections
     - Margin assumptions
     - WACC calculation
     - Terminal value
     - Implied share price

   - **Comparable Analysis:**
     - Peer company multiples
     - Implied valuation range

   - **Fair Value Estimate:**
     - Weighted valuation
     - Margin of safety

5. **Technical Factors**
   - Price trends
   - Support/resistance levels
   - Volume patterns
   - Relative strength
   - Moving averages

6. **Risk Factors**
   - Company-specific risks
   - Industry risks
   - Macro risks
   - ESG considerations

7. **Investment Recommendation**
   - Fair value estimate
   - Current price vs fair value
   - Upside/downside potential
   - Rating (Strong Buy/Buy/Hold/Sell)
   - Price target
   - Investment horizon

**Deliverable:** Equity research report with recommendation

### Workflow 3: Real Estate Investment Analysis

**Objective:** Evaluate real estate investment opportunity

**Steps:**
1. **Property Overview**
   - Property type (residential, commercial, industrial)
   - Location and market
   - Size and specifications
   - Age and condition
   - Purchase price

2. **Income Analysis**
   - **Gross Rental Income:**
     - Current rent roll
     - Market rent comparison
     - Occupancy rate
     - Lease terms

   - **Operating Expenses:**
     - Property taxes
     - Insurance
     - Utilities
     - Maintenance and repairs
     - Property management (8-12%)
     - Vacancy reserve (5-10%)
     - CapEx reserve (5-10%)

   - **Net Operating Income (NOI):**
     - Gross Income - Operating Expenses

3. **Return Metrics**
   - **Cap Rate:**
     - NOI / Purchase Price
     - Compare to market cap rates

   - **Cash-on-Cash Return:**
     - Annual Cash Flow / Total Cash Invested
     - Pre-tax and after-tax

   - **Internal Rate of Return (IRR):**
     - 5-10 year hold period
     - Include exit sale

   - **Equity Multiple:**
     - Total Cash Returned / Total Cash Invested

4. **Financing Analysis**
   - Loan terms (rate, term, amortization)
   - Down payment required
   - Debt service coverage ratio (DSCR)
   - Loan-to-value (LTV)
   - Monthly payment calculation
   - Positive/negative leverage

5. **Market Analysis**
   - Comparable sales
   - Rental comps
   - Market trends
   - Supply/demand dynamics
   - Economic drivers
   - Appreciation potential

6. **Risk Assessment**
   - Vacancy risk
   - Tenant quality
   - Market risk
   - Interest rate risk
   - Deferred maintenance
   - Environmental issues
   - Regulatory changes

7. **Value-Add Opportunities**
   - Rent increases
   - Expense reductions
   - Property improvements
   - Use conversion
   - Development potential

8. **Investment Decision**
   - Return summary
   - Risk-adjusted assessment
   - Recommendation
   - Offer price suggestion

**Deliverable:** Real estate investment analysis with recommendation

### Workflow 4: ROI and Payback Analysis

**Objective:** Calculate return on investment for business projects

**Steps:**
1. **Project Definition**
   - Investment description
   - Total investment required
   - Investment timeline
   - Expected benefits

2. **Cost Analysis**
   - **Initial Investment:**
     - Capital costs
     - Implementation costs
     - Training costs
     - One-time expenses

   - **Ongoing Costs:**
     - Operating costs
     - Maintenance
     - License fees
     - Personnel

3. **Benefit Analysis**
   - **Revenue Benefits:**
     - New revenue generation
     - Revenue acceleration
     - Price improvements

   - **Cost Savings:**
     - Labor savings
     - Material savings
     - Efficiency gains
     - Error reduction

   - **Quantification:**
     - Conservative estimate
     - Expected estimate
     - Optimistic estimate

4. **Financial Metrics**
   - **Simple ROI:**
     - (Total Benefits - Total C