As artificial intelligence (AI) received renewed interest with the launch of two major AI tools, ChatGPT and Google Bard, both have shown their use cases in various aspects, including analyzing the portfolio of famous investor Michael Burry.
Indeed, following the report on Burry’s recent strategic moves and holdings, as well as the analysis of his top 10 stock holdings as of September 14, Finbold has consulted Google Bard and ChatGPT for any insights that other investors could take into account, and both have delivered results.
Burry’s portfolio
As a reminder, the renowned ‘Big Short’ investor’s top 10 included two major exchange-traded funds (ETFs): SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ), which have experienced significant returns in 2023, at over 17% and 40%, respectively.
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His other holdings included Expedia Group (NASDAQ: EXPE), Charter Communications (NASDAQ: CHTR), Generac Holdings (NYSE: GNRC), Cigna (NYSE: CI), CVS Health Group (NYSE: CVS), MGM Resorts (NYSE: MGM), Stellantis NV (NYSE: STLA), and Vital Energy (NYSE: VTLE).
Google Bard’s analysis
Analyzing the above portfolio, Google’s AI tool observed that all the enumerated assets were either on the NASDAQ or NYSE stock exchanges and that they were all listed in the United States, but also that they were all from different industries.
Furthermore, Bard specified that Burry’s portfolio was “highly concentrated, relatively liquid and diversified, [and] heavily weighted towards put options on the S&P 500 and the Nasdaq 100, which suggests that Burry is bearish on the overall stock market.”
As the AI chatbot stated, Burry preferred companies that were “relatively resilient” to the recession, which could mean that he likes to play it safe in the face of a possible market slump and seeks out stocks that “could benefit from long-term trends:”
“Burry’s portfolio suggests that he is betting on a decline in the stock market in the near future. His put options on the S&P 500 and the Nasdaq 100 will pay off if the stock market falls. His other holdings are also largely defensive in nature.”
ChatGPT’s analysis
On the other hand, the analysis of OpenAI’s brainchild, ChatGPT, was somewhat different, drawing attention to the diversity of Burry’s portfolio, which included publicly traded companies in the US and covered “a range of sectors and industries.”
Finally, ChatGPT noted that Burry was famous “for his contrarian investment strategies” and that he “may have chosen these stocks based on his analysis of their fundamentals, valuation, and potential for growth or value appreciation.” That said, it also stressed the importance of research before investing.
All things considered, both Google Bard and ChatGPT have provided valuable perspectives on Burry’s investment strategy, showing their role as helpful tools to consider in navigating the markets in which one’s own due diligence still remains critical.
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