AI tools for stock picking

Robo stock picking has been around a long time before we called it AI. Wouldn't say it's been a big win for the common man portfolio.

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But a friend of mine just told me about his last 24 month success using ChatGPT and Gemini Pro for picks

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That's a red flag and much too short a time window to make any judgements

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His goal is buy and hold with consistent contributions

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That is the path to success no matter how you get there.. so should work

I would stick to your strategy, and wouldn't expect a silver bullet like AI pickers to out perform. Because if it was we would be the last to know.

Any time I hear of unrealistic returns, all I see is a ball of risk that won in the timeframe it was traded. For every stock that takes a huge run for a period, there are 100 others that absolutely tank. To your point, it isn't sustainable and 2 years isn't necessarily a predictor of the next 20 or 30.

If it were as easy as feeding AI a finely worded question to get a highly profitable result, there would be an onslaught of investors playing the same game.

AI isn’t going to be able to account for emotion based market action. It’ll be better suited to finding companies that fit various measurables like PE ratio, price to book, historical price relevance, and other metrics that can be measured.

I used a system years ago that worked okay but didn’t beat the S&P so I non renewed it

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AI isn’t going to be able to account for emotion based market action.

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By examining historical patterns, we can better navigate present challenges (I paraphrase AI when I ask "why should we learn history?", for a little Monday irony)

And, I present: LTCM

Exhibit A for your good point. As long as humans are still center to the market action, that is.

Started this and forgot about it

Thanks for the responses all insightful I appreciate it

These "AI algorithms" for sports betting always kill me. There are about 10-15 guys that have built successful models for betting (by successful, I mean creating an edge over a sustained time period). I was involved in the space for reasons separate from gambling, but having met many of these guys, the level of sophistication in their models were truly astounding. Many of them were Yale/MIT grads... stupid smart. And BTW, the ones who actually have built a true edge would not let anyone come near their picks, let alone be selling them with a subscription to the public!