[lkagele]

Just curious. Has anyone experimented with using AI for stock picks or building a portfolio? If so, how satisfied are you with the results to date?

[Velvet]

ChatGPT says:
“ChatGPT can provide general financial education and conservative investment ideas, but it is not a licensed financial planner and does not give personalized regulated advice.”

[raananh]

Originally Posted by lkagele

Just curious. Has anyone experimented with using AI for stock picks or building a portfolio? If so, how satisfied are you with the results to date?

If AI or a human was great in investing, than most investors, brokers and investment companies would be out of business and everyone would be rich.

At best, from my experiments, AI is descent in its investment choices, for average returns, BUT ABOVE ALL:

AI will not try cheat, scam or profit off you and your money.

AI has unlimited patience with questioning it, asking more questions, debating it, and arguing against its recommendation

AI will explain clearly and directly WHY it made its decisions

AI can be directed to follow your preferred investment style.


In summery: I don't think AI is better than honest human experts. However, AI will not, on purpose, give you bad advise that some (most) human "investment consultants" do because their main goal is profits for themselves and the company they work for.

[bragones]

I just asked Copilot how to invest $100k in stocks. It returned some good general information around asset allocation depending upon your risk tolerance and gave one specific example of a conservative portfolio of ETFs. I was hoping to get specific stock picks but Copilot didn't go there, other models might. IMO its only a matter of time before you'll be able to use AI to replace a Financial Advisor if you choose to do so.

[Caymus]

Originally Posted by bragones

I just asked Copilot how to invest $100k in stocks. It returned some good general information around asset allocation depending upon your risk tolerance and gave one specific example of a conservative portfolio of ETFs. I was hoping to get specific stock picks but Copilot didn't go there, other models might. IMO its only a matter of time before you'll be able to use AI to replace a Financial Advisor if you choose to do so.

But you won't get a "free" rubber chicken dinner.

The last time I check the top pick from Copilot was Microsoft and was Micron from Gemini.

[lkagele]

Originally Posted by bragones

I just asked Copilot how to invest $100k in stocks. It returned some good general information around asset allocation depending upon your risk tolerance and gave one specific example of a conservative portfolio of ETFs. I was hoping to get specific stock picks but Copilot didn't go there, other models might. IMO its only a matter of time before you'll be able to use AI to replace a Financial Advisor if you choose to do so.

You might be right about financial advisors being a thing of the past. I'm seeing investment firms use proprietary AI programs to build portfolios. Computers are much better at analyzing allocation, history, free cash flow, financials, valuation and momentum and so on. Building a balanced portfolio would be much easier using AI, IMO.

[collie1228]

I asked ChatGPT to help me understand the “barbell strategy”. It did a pretty good job of summarizing what it is and how it works. It didn’t develop a plan for me, but did give examples of ETF’s and individual stocks that could be used in such a strategy.

[Michael G.]

Originally Posted by Velvet

ChatGPT says:
“ChatGPT can provide general financial education and conservative investment ideas, but it is not a licensed financial planner and does not give personalized regulated advice.”

Hmmm Good point.
We know at some point in time AI will be considered a licensed financial planner.
I wonder how that could happen, but it will.

[mrf0151]

I am experimenting with Schwab Intelligent Advisor with 10% of my portfolio just to see how it will compare to my paid professional portfolio.

[lkagele]

Originally Posted by Michael G.

Hmmm Good point.
We know at some point in time AI will be considered a licensed financial planner.
I wonder how that could happen, but it will.

OK but will it be a fiduciary?....

[spinner1001]

Originally Posted by lkagele

Just curious. Has anyone experimented with using AI for stock picks or building a portfolio? If so, how satisfied are you with the results to date?

Picking stocks?

Come back in a year and tell us how you did compared to buy & hold an S&P 500 index fund — after paying taxes on your trading.

Chatbots are not trained to pick stocks. Wrong tool. Black box. Maybe use LLMs to write code — if you are into coding — for detailed financial analysis of companies that interest you.

Chatbots for building a portfolio? Education, yes. Stock picking, no.

If chatbots were good for stock picking, lots more people would already be multi-millionaires by now and the media would be full of stories about it. Have ChatGPT tell you in concrete detail how it would go about picking stocks for you. You will get a lot of theory.

Don’t get me started on agentic AI for trading. That’s for Wall Street, not Main Street.

[raananh]

Originally Posted by spinner1001

Picking stocks?

Come back in a year and tell us how you did compared to buy & hold an S&P 500 index fund — after paying taxes on your trading.

Totally agree with you!

So everyone should test it, very easy, 5 minutes effort: ask AI to pick stocks for you, write it down, and revisit the results a year later.

However, when it comes to general investment trends, Indexes, sector ETFs and Mutual Funds, I think AI can give good advise with descent results for those with little or no experience with investing.

I doubt that AI can beat the market in this respect.

However, my opinion, you can trust AI in this particular respect more than most Financial Advisors who most of the (not all) are really about making profits for themselves or the companies they work for, or are too conservative so the customer won't complain if the market goes down.

Good luck with your investments!

[Maker]

Originally Posted by spinner1001

Picking stocks?

Come back in a year and tell us how you did compared to buy & hold an S&P 500 index fund — after paying taxes on your trading.

Chatbots are not trained to pick stocks. Wrong tool. Black box. Maybe use LLMs to write code — if you are into coding — for detailed financial analysis of companies that interest you.

Chatbots for building a portfolio? Education, yes. Stock picking, no.

If chatbots were good for stock picking, lots more people would already be multi-millionaires by now and the media would be full of stories about it. Have ChatGPT tell you in concrete detail how it would go about picking stocks for you. You will get a lot of theory.

Don’t get me started on agentic AI for trading. That’s for Wall Street, not Main Street.

Hope you are aware that almost all stock trades are generated by AI. Not "us" but institutional investors. Generally called "computer trading"

[Velvet]

Originally Posted by Maker

Hope you are aware that almost all stock trades are generated by AI. Not "us" but institutional investors. Generally called "computer trading"

And not only is AI biased according to how it is programmed but it is not updated in real time.

[MorTech]

AI will make everyone on earth more rational over time but it is interesting to ponder AI and market sentiment.