ChatGPT's Stock Portfolio Outperforms Top UK Funds
Finder.com has reported that ChatGPT's theoretical stock portfolio, comprising of 38 companies, outperformed the top 10 UK funds for eight consecutive weeks beginning March 6th, 2023. The AI-powered fund grew by approximately 4.93% while the competing funds together averaged a loss of 0.78%. The ChatGPT portfolio outperformed the real funds in 34 out of 39 market days during the same period.
The top three performing stocks in the ChatGPT portfolio were Meta, Microsoft, and Intel Corporation, which saw gains of roughly 30%, 20%, and 18%, respectively. Other names included in the portfolio were Visa, Home Depot, Johnson & Johnson, Nvidia, and Netflix.
The AI language model used by Finder to select the stocks was based on investing principles taken from leading funds. The website noted that the study was a theoretical exercise and did not provide any specific investment advice.
Jon Ostler, CEO of Finder, highlighted that using ChatGPT for investing research may not be a good idea for the public. While big funds have been using AI for years, relying on a rudimentary AI platform that openly says its data is patchy and lacks the intricacies of market psychology doesn't seem like a wise choice.
Some of the UK funds that were used for comparison to the ChatGPT portfolio included Fundsmith, Vanguard LifeStrategy 80% Equity, and Fidelity Index UK P Acc.
In a separate survey, Finder found that 19% of UK adults would consider getting financial advice from ChatGPT, and 8% were already doing so. However, more than one third of Brits said they weren't sure what ChatGPT was. Ostler advised that spending time researching via known primary sources or a qualified advisor would be the safer and recommended approach.
While using AI for investing can be a wiser choice than relying on an unqualified TikTok star, Ostler cautioned that people should not rely solely on them for their entire investing education.
