ChatGPT and Investing

Christopher Mills
February 23, 2023

By now, we've all heard about chatGPT. We're using it at my agency but what I really wanted to look at was how we could use chatGPT for investing purposes. The obvious is being able to ask chatGPT questions about types of investments, who to follow when it comes to investing, and leveraging machine learning to draw out information quickly. What we really want to ask is, "What will my return be if I invested in Google?" - Unfortunately this just isn't the case, not yet at least. It's important to note that chatGPT only has limited data beyond 2021.

I also note that market sentiment isn't something chatGPT can do due to not having access to real-time information:

Now, what I will say is that I expected this, we're not at a place where a machine can predict quite like this. Of course, there are machines that do prediction based on all sorts of market movements and the like, but for a machine to give you a high probability response based on something like a share price moving in a direction, we're simply not there and I believe it will be a long time until we get there.

Chamath Palihapitiya (born 3 September 1976) is a venture capitalist, engineer, SPAC sponsor, founder, and CEO of Social Capital. Palihapitiya was an early senior executive at Facebook, working at the company from 2007 to 2011. Following his departure from Facebook, Palihapitiya started his fund, The Social+Capital Partnership, through which he invested in several companies, including Yammer and Slack. The Social+Capital Partnership changed its name to Social Capital in 2015. He is a co-host of the technology podcast All In. I've followed Chamath for some time now, he was quite outspoken about Telsa (and Bitcoin/crypto) and I enjoyed some of his commentary. He's come under fire a few times for various things he's done but I really enjoy consuming his content because of his ability to explain it really well. I watched this recent video on Investing G where Chamath was asked some questions about chatGPT:

Let me know what you think of his thoughts in the comments?

But, let's get back to the question, "How can we use chatGPT for investing?"

Well, there are quite a few things you could proposition chatGPT with, here are some quick examples:

  1. Ask chatGPT to give you the description of a business you're interested in, this could be as far as asking it for information on its management team, acquisitions and the like,
  2. We could ask chatGPT who a company's competitors are,
  3. What about asking chatGPT how well a company performed during a recession,
  4. How about asking chatGPT what a companies unique selling points are,
  5. Let's ask what the weaknesses of the company are,
  6. Ask what the historical performance of a company has been like,
  7. What about asking chatGPT about the industry the company is in,

So although we can't ask a direct question about a company's share price in the future, we can definitely leverage chatGPT for our due diligence, which is crucial when it comes to making any decision about a company to invest in.

Okay, but let's give this a quick go, and ask chatGPT what Tesla's moat is:

Now, let's see what GM's moat is:

As you can see, we might not get the exact answers we wanted but this sort of research starts to become really valuable when thinking about a company to invest in.

What about asking how often these companies are mentioned on the internet:

Telsa Mentions
General Motors Mentions

We can go a step further and ask questions such as, "How many times has Telsa been mentioned on Reddit?" and compare that to General Motors. Redditsearch.io says that Telsa has been mentioned 1.6 million times across Reddit since January 2020. General Motors, on the other hand, has been mentioned only 243,000. And then, what about, "Is Telsa being spoken about more or less online as the years have gone by?"

As you can probably tell, these are all questions that are leading us toward some really great information that we can use as part of our due diligence.

Right, so let's try and get a bit more specific and take a different route to get to some answers we're interested in. How about we ask chatGPT about Telsa and General Motors, let's see what it thinks when comparing these companies:

-

Both Tesla and General Motors are major players in the electric vehicle (EV) industry, but it can be difficult to say definitively which one is ahead because there are several factors to consider.

In terms of sales, Tesla is currently the clear leader in the EV industry. According to InsideEVs, a website that tracks EV sales, Tesla sold over 1 million electric cars globally in 2020, while General Motors sold just over 20,000 Chevy Bolts in the same year. However, it's worth noting that General Motors has only recently begun ramping up its EV production and sales, and it has several new electric models in the works, such as the Cadillac Lyriq and the GMC Hummer EV.

When it comes to technology and innovation, Tesla is often seen as a leader in the industry. The company has been praised for its advanced battery technology, which allows for longer range and faster charging times, as well as its Autopilot system, which offers advanced driver assistance features. However, General Motors has also been investing heavily in EV technology, and it has developed its own Ultium battery system, which is expected to be used in many of its upcoming electric models.

Another factor to consider is market capitalization. Tesla is currently valued much higher than General Motors, with a market cap of over $800 billion as of February 2023, while General Motors has a market cap of around $87 billion. This reflects investors' confidence in Tesla's future growth potential and its position as a leader in the EV industry.

In conclusion, while both Tesla and General Motors are significant players in the EV industry, Tesla is currently ahead in terms of sales and market capitalization, and is often seen as an innovator and leader in the field. However, General Motors has been making significant investments in EV technology and has several new electric models in the works, so it will be interesting to see how the competition between these two companies develops in the coming years.

-

Now, this is starting to get interesting, don't you think? It's important to note that asking these questions and getting the answers only took a matter of minutes. If I were doing my research, it would take considerably longer to collate all this information. I certainly see a great deal of value in chatGPT when it comes to this!

Before I head off, something I've been asked a number of times recently, is how one can invest in artificial intelligence companies. The answers were relatively obvious but I wanted to share what I came across. Oh, and I didn't use chatGPT for this!

➡️ Alphabet Inc. (NASDAQ:GOOGL)
➡️ NVIDIA Corporation (NASDAQ:NVDA)
➡️ International Business Machines Corporation (NYSE:IBM)
➡️ Microsoft Corporation (NASDAQ:MSFT)
➡️ Amazon.com, Inc. (NASDAQ:AMZN)
➡️ Advanced Micro Devices, Inc. (NASDAQ:AMD)
➡️ Intel Corporation (NASDAQ:INTC)
➡️ Baidu, Inc. (NASDAQ:BIDU)
➡️ Facebook, Inc. (NASDAQ:META)
➡️ Alibaba Group Holding Ltd. (NYSE:BABA)
➡️ Netflix (NASDAQ:NFLX)
➡️ Micron Technology (NASDAQ:MU)
➡️ C3.AI (NYSE:AI)

If I did use chatGPT for this, the answer would have been:

➡️ Alphabet Inc. (NASDAQ:GOOGL)
➡️ NVIDIA Corporation (NASDAQ:NVDA)
➡️ International Business Machines Corporation (NYSE:IBM)
➡️ Microsoft Corporation (NASDAQ:MSFT)
➡️ Amazon.com, Inc. (NASDAQ:AMZN)
➡️ Intel Corporation (NASDAQ:INTC)
➡️ Telsa, Inc (NASDAQ:TSLA)

Rather similar and it took me longer to do the research than it took chatGPT.. another great example of a time saver.

Now, let's have some fun!

Awww, thanks for being so helpful, John!

Next step...

Sheesh, good work, John!

We're getting somewhere now! 😀

We can go further, we can ask John to refine the results and so forth. It's a lot of fun, give it a try and let me know what you came up with?

Shoutout to inspiration on Reddit for this.

So all in all, and in conclusion, I see chatGPT as being a very useful tool when it comes to doing due diligence but at the end of the day, you're not going to make millions asking chatGPT who you should invest in, you're going to need to do the work 😉

Christopher Mills

I run a successful agency, my other passion is personal finance.

Join The Newsletter

Other posts

you might like:

glasssearchheartusermoneyquestionnewspaper-oline-chart

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram