It is often said that trying to beat the stock market by perfecting the timing of each trade is far more trouble than it is worth and could lead to far worse results than making strong picks and just sticking with the shares, no matter the current and temporary trials and tribulations.
Such an approach can be enticing as it has a tendency to eventually snowball into vast returns and dividend yields, as best exemplified by the wealth growth of the king of getting rich slowly, Warren Buffett.
Still, choosing the correct stock to buy and hold forever – or at least for decades – is no small feat and just buying blue chip firms isn’t the entire story – Enron and Kodak were blue chip giants until they weren’t, one due to fraud, one due to a changing industry.
Picks for you
Thus, Finbold decided to enlist the aid of OpenAI’s flagship artificial intelligence (AI) model, ChatGPT, to try and find some good candidates for taking very long positions.
Amazon (NASDAQ: AMZN)
With its first pick – and as will become a theme – ChatGPT proved fairly uncontroversial and decided Jeff Bezos’ Amazon (NASDAQ: AMZN) is a strong candidate for buying and holding forever.
The AI offered a very solid, if standard, reasoning focusing on Amazon’s past successes and more recent developments.
For example, it reflected on feats such as grabbing market share so successfully that it is now synonymous with e-commerce, nearly to the extent Hoover is with hoovers or Google (NASDAQ: GOOGL) is with googling, while also mentioning its rapidly-growing cloud business.
Meanwhile, AMZN has been performing in the stock market in 2024 with Amazon stock price today standing at $185.88 after a 23.98% rise year-to-date (YTD).
Microsoft (NASDAQ: MSFT)
In another uncontroversial pick, ChatGPT decided that the technology giant Microsoft (NASDAQ: MSFT) constitutes a very strong long-term play.
As the AI pointed out, the big tech firm that was instrumental in its own development has proven its ability to grow, diversify, acquire other promising companies, and generally remain near the bleeding edge of innovation.
Meanwhile, MSFT has been doing remarkably well in 2024 to the point that it, in January, became the world’s biggest company by market cap. Microsoft stock price today stands at $407.36 as it grew a total of 9.84% between the start of the year and the time of publication on May 6.
Johnson & Johnson (NYSE: JNJ)
ChatGPT described its final pick as a strong defensive stock that operates in an industry that tends to offer exceptional long-term returns: Johnson & Johnson (NYSE: JNJ).
As the AI explained, JNJ is a veritable behemoth involved with various facets of healthcare that boast a truly global reach. The large language model (LLM) also pointed out that Johnson & Johnson is an attractive pick thanks to the stability it offers both in terms of earnings and dividends.
Unlike the other two, JNJ has been struggling in 2024 and has generally been on a downtrend, falling 6.41% year-to-date (YTD)
Still, as JNJ price today stands at $149.71, the company is presenting a value buying opportunity – again, compared to the other two of ChatGPT’s picks, which have seen substantial growth this year – provided the AI’s long-term analysis is correct.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
