In this article, we will take a detailed look at the 15 Stocks ChatGPT Says Will Make Me Rich in 10 Years. For a quick overview of the 5 such stocks, read our article 5 Stocks ChatGPT Says Will Make Me Rich in 10 Years.
Picking individual stocks to beat the market is getting harder by the day, thanks to rising volatility, increasing competition and receding transparency. More and more young investors are gravitating towards the idea of investing their money into broader market index funds instead of individual stocks. Jeremy Siegel in his book “Stocks for the Long Run” wrote a chapter titled “Building Wealth Through Stocks.” In this chapter the Professor of Finance at the Wharton School of the University of Pennsylvania in Philadelphia shares some data showing how difficult it is to say with confidence that the money manager you are trusting with your savings actually knows their job.
“Even if money managers choose stocks that have an expected return of 1 percent per year better than the market, there is only a 62.7 percent probability that they will exceed the average market return after 10 years and only a 71.2 percent probability that they will exceed the average market return after 30 years. If managers pick stocks that will outperform the market by 2 percent per year, there is still only a 74.0 percent chance that they will outperform the market after 10 years. This means there is a 1-in-4 chance that they will still fall short of the average market performance. The length of time needed to be reasonably certain that superior managers will outperform the market will most surely outlive their trial period for determining their real worth.”
Can AI Pick Individual Stocks and Beat the Market?
AI is taking over the world and with AI-powered machines beating chess masters, creating songs and world-class art, many are asking why can’t AI be used for stock picking? AI and machine learning has been used by a lot of hedge funds for years now. But we are still years away from a time when AI would be able to process billions of data points and do predictive analysis on stock movements to pick stocks for the future. Bloomberg’s Justina Lee in October talked to hedge funds who are trying to use AI to beat the market. So far their performance hasn’t been impressive because, according to Lee, the financial data is a lot “noisier” and there are many moving parts which AI algorithms still need to process.
But the advances made by AI in stock picking are huge. Back in 2021, Bloomberg had reported that researchers at the University of Oxford said they have designed a machine learning model with a capability to predict stock price movements. They claimed that the model posted a whopping 80% success rate for the equivalent of about 30 seconds of live trading.
Photo by Andy Kelly on Unsplash
Methodology
For this article we asked ChatGPT to wear the hat of a professional stock advisor and recommend us stocks that it believes can make one rich in the next ten years. Here is our exact prompt:
“Assume the role of a professional stock advisor for some time and recommend me 15 stocks based on your data which can make one rich in the next 10 to 15 years.”
As expected ChatGPT started its response by reminding us that it’s only a language processor and for stock recommendations one should contact professional stock advisors. Nonetheless the chatbot did mention 15 stocks it believes have the potential for growth. It’s important to note that ChatGPT based its recommendations on the past performance of these stocks. Here was ChatGPT’s response after its standard warnings and cautions:
“I can suggest 15 stocks from various sectors that have shown strong potential historically, but please consider these suggestions as a starting point for your own research.”
We asked ChatGPT why did it recommend these stocks and does it believe they can make one rich in the next decade? The chatbot said:
“Investing in well-established, fundamentally strong companies like the ones mentioned earlier can potentially generate wealth and profits over the long term. However, there are no guarantees in the stock market, and future performance is always uncertain.”
It also said:
“The recommendations for these stocks are based on various factors that historically indicate strong performance and potential for growth. These companies have exhibited strong fundamentals, innovative capabilities, diversified revenue streams, and market dominance in their respective sectors, which could potentially contribute to their future growth and long-term success. However, always consider market conditions, competition, economic factors, and changes in technology when making investment decisions.”
Let’s start our list of stocks that have the potential to make one rich in the next decade. The list is sorted in ascending order of the number of hedge fund investors in these companies.
15. Procter & Gamble Co (NYSE:PG)
Number of Hedge Funds: 74
With 67 years of consistent dividend increases, Procter & Gamble Co (NYSE:PG) is one of the favorite defensive stocks to buy among hedge funds and retail investors. ChatGPT also thinks Procter & Gamble Co (NYSE:PG) stock is a good buy and hold for the next ten years.
In October Procter & Gamble Co (NYSE:PG) posted fiscal Q1 results. EPS in the period came in at $1.83, beating estimates by $0.11. Revenue increased by 6.1% year over year to $21.87 billion, beating estimates by $290 million.
ClearBridge Sustainability Leaders Strategy made the following comment about The Procter & Gamble Company (NYSE:PG) in its Q2 2023 investor letter:
“Reinforcing defensive exposure and pushing our consumer staples positioning from underweight to overweight the benchmark, we added The Procter & Gamble Company (NYSE:PG), a leading consumer products company with leading franchises in a variety of stable categories, including fabric care, baby, beauty and health. It is a high-quality company with a track record of superior growth, market share gains and attractive returns on capital. It also has defensive attributes when economic conditions deteriorate. Procter & Gamble is a sustainability leader with a demonstrated commitment to addressing environmental and social objectives in how it manages the business, and it has above-average corporate governance practices. Many Procter & Gamble products have a positive impact by promoting hygiene, self-care or health.”
14. PayPal Holdings Inc (NASDAQ:PYPL)
Number of Hedge Funds: 78
PayPal Holdings Inc (NASDAQ:PYPL) shares have lost about 20% year to date through December 7. But ChatGPT believes PayPal Holdings Inc (NASDAQ:PYPL) stock has the potential to make one rich in the next ten years.
Goldman Sachs also has a bullish outlook on PayPal Holdings Inc (NASDAQ:PYPL) stock. The firm recently released a list of 2023 laggards it believes have the potential to post gains in the first quarter of 2024. PayPal Holdings Inc (NASDAQ:PYPL) made it to the list. Goldman has a Buy rating on the stock.
As of the end of the third quarter of 2023, 78 hedge funds tracked by Insider Monkey reported owning stakes in PayPal Holdings Inc (NASDAQ:PYPL). The biggest stakeholder of the company was Gavin Baker’s Atreides Management which owns a $244 million stake in PayPal Holdings Inc (NASDAQ:PYPL).
Wedgewood Partners made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2023 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) was a detractor from performance during the quarter. Total payment volume grew +11% while revenues grew +8% – both FX-neutral. Adjusted operating earnings grew +20%. E-commerce industry sales trends have normalized back to their pre-pandemic trend of growth, with high-margin branded payments keeping track with the industry. Despite this, investors continue to be concerned that PayPal’s fast-growing private-label payments solutions will dilute Company returns. However, payments is a very scalable business, and the Company will be able to manage both private label and branded for attractive returns and double-digit growth. While multiples in the payment industry have significantly compressed, especially after the multi-year process of being added to the index @inancial sector, PayPal’s businesses are substantially different enough from traditional spread-based businesses; in addition to possessing much more compelling growth drivers, PayPal’s well below market multiple should revert to its higher, historical average.”
13. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Funds: 81
ChatGPT isn’t alone in believing Tesla Inc (NASDAQ:TSLA) can make me rich in the next ten years. Cathie Wood believes Tesla Inc (NASDAQ:TSLA) shares can reach $2000 by 2027. The stock’s current price is $239. Tesla Inc (NASDAQ:TSLA) is making waves after it released its much-awaited Cybertruck.
As of the end of the third quarter of 2023, 81 hedge funds had stakes in Tesla Inc (NASDAQ:TSLA). The biggest stakeholder of Tesla Inc (NASDAQ:TSLA) during this period was, you guessed it, Cathie Wood, who had a stake worth over $1 billion in the company.
Here is what Claret Asset Management has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2023 investor letter:
“We have mentioned in the last letter that the “magnificent seven”, including Tesla, Inc., dominated the performance of the S&P 500. We might have left you with the feeling that we are bearish because we don’t find the Magnificent 7 attractive. Let us make it clear: we are just not so pessimistic as to believe there are only 7 growth opportunities in the entire global equity market. In fact, we are optimists and think opportunity is abundant. Just not in everyone’s current 7 favorite stocks.”
12. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Funds: 84
Johnson & Johnson (NYSE:JNJ) ranks 12th in our list of the best stocks to buy and hold for the next ten years according to ChatGPT. With over six decades of dividend increases, Johnson & Johnson (NYSE:JNJ) sees popularity among investors during recessions and uncertainty.
Earlier this month, Johnson & Johnson (NYSE:JNJ) said the FDA granted its therapy candidate TAR-200 breakthrough therapy designation for the treatment of high-risk non-muscle-invasive bladder cancer.
As of the end of the third quarter of 2023, 84 hedge funds tracked by Insider Monkey reported owning stakes in Johnson & Johnson (NYSE:JNJ). The most significant stakeholder of Johnson & Johnson (NYSE:JNJ) was Ken Fisher’s Fisher Asset Management which owns a $1.2 billion stake in Johnson & Johnson (NYSE:JNJ).
ClearBridge Large Cap Value Strategy made the following comment about Johnson & Johnson (NYSE:JNJ) in its Q3 2023 investor letter:
“The health care space provided some opportunities in the quarter, as we increased our exposure to medical device company Becton, Dickinson as well as large cap pharmaceutical company Johnson & Johnson (NYSE:JNJ). Johnson & Johnson recently spun out its consumer health care business, becoming a more focused yet broadly diversified pharmaceutical and medtech company.”
11. Walt Disney Co (NYSE:DIS)
Number of Hedge Funds: 89
Many believe Walt Disney Co (NYSE:DIS) can turn things around and get back its glory days under the leadership of Bob Iger, who plans to step down until 2026. Jim Cramer is also bullish on Disney shares.
Activist hedge fund manager Nelson Peltz is getting ready to launch a proxy fit to get representation on Walt Disney Co’s (NYSE:DIS) board after the company turned down Peltz’s fund Trian Partners’ request for representation on the board. Nelson Peltz’s hedge fund owns a $2.7 billion stake in Walt Disney Co (NYSE:DIS).
As of the end of the third quarter of 2023, 89 hedge funds tracked by Insider Monkey had stakes in Walt Disney Co (NYSE:DIS).
Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:
“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS). The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”
10. Union Pacific Corp (NYSE:UNP)
Number of Hedge Funds: 90
Railroad company Union Pacific Corp (NYSE:UNP) ranks 10th in our list of the stocks ChatGPT believes can make one rich in in the next ten years. In October, Deutsche Bank upgraded the stock to Buy from Hold, citing increased rail volumes. The bank has a $235 price target on the stock.
As of the end of the third quarter of 2023, 90 hedge funds out of the 910 funds tracked by Insider Monkey reported having stakes in Union Pacific Corp (NYSE:UNP). The biggest stakeholder of Union Pacific Corp (NYSE:UNP) was Eric W. Mandelblatt’s Soroban Capital Partners which owns a $1.6 billion stake in Union Pacific Corp (NYSE:UNP).
Cooper Investors made the following comment about Union Pacific Corporation (NYSE:UNP) in its Q3 2023 investor letter:
“The major focus in Texas was spending a day visiting operations of Union Pacific Corporation (NYSE:UNP), a Stalwart investment made earlier this year.
Our investigations into the railroad industry have felt like a history lesson of the late 19th Century, a peek into the Gilded Age. At this time railroads became a transformative force that connected the East Coast to the Western frontier, pushing the economic potential of US industry and commerce to new heights. Over a century later and despite technological upheaval, the freight railroads of North America still feel just as relevant and a key part of the new industrial age.
To own, operate and invest in a railroad is to be a part of the lifeblood of North America. It is to witness the movement of grain, concrete, steel, wood, energy, autos, and shipping containers across vast distances. These are irreplaceable assets that could not be built today, and for the most part have very few substitutes – UNPs tagline “Building America” certainly rings true…”
9. Netflix Inc (NASDAQ:NFLX)
Number of Hedge Funds: 102
Everyone is talking about GTA 6 these days after its trailer was released, and Netflix Inc. (NASDAQ:NFLX) saw it a perfect opportunity to reveal its GTA plans. Netflix Inc. (NASDAQ:NFLX) plans to bring Grand Theft Auto franchise games to mobile. It was recently reported that Netflix Inc. (NASDAQ:NFLX) will release Grand Theft Auto: The Trilogy — The Definitive Edition at no extra charge for its subscribers Dec. 14.
Out of the 910 hedge funds tracked by Insider Monkey as of the end of September, 102 hedge funds reported owning stakes in Netflix Inc. (NASDAQ:NFLX). The biggest stakeholder of Netflix Inc. (NASDAQ:NFLX) was Ken Fisher’s Fisher Asset Management which owns a $1.5 billion stake in Netflix Inc. (NASDAQ:NFLX).
RiverPark Advisors made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2023 investor letter:
“Netflix, Inc. (NASDAQ:NFLX): NFLX was a top detractor in the quarter on weaker than expected reported and guided revenue, despite 2Q subscriber growth that was well above expectations (+5.9 million versus estimates of +2.1 million). The company’s subscriber growth re-accelerated following the company’s crack down on password sharing, and the rollout of the advertising supported subscriber offering known as the Ad Tier, but the average revenue per user came in below expectations and is expected to remain muted in the near term. NFLX reiterated expectations for full year 2023 operating margins of 18-20%, and guided free cash flow to at least $5 billion, up from prior guidance of $3.5 billion. Despite the positive momentum in the company’s business, market participants took comments from management at a recent conference to mean revenue growth may be slower in the coming years than expected. This was not our interpretation of these comments.
In fact, the recent re-acceleration of subscriber growth, plus price increases on premium memberships and a stabilization of content investments, should position the company for low double digit annual revenue growth over the next few years while driving improved operating margin to more than 25% (revenue grew 3% for 2Q23 and operating margin was 22.3%, up from 13% in 2019). We also believe that the stabilization of content spend should allow the company to continue to scale its FCF.”
8. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Funds: 112
Adobe Inc. (NASDAQ:ADBE) shares have gained about 76% this year through December 7. But ChatGPT believes Adobe Inc. (NASDAQ:ADBE) stock has more room to run for the next 10 years. Analysts also believe the stock is just getting started with its AI potential. Earlier this year, DA Davidson called Adobe Inc. (NASDAQ:ADBE) stock a “Best-of-Breed Bison” and increased its rating to Buy from Hold.
“The company has a strong track record of long-term recurring revenue growth with subscriptions representing 97% of revenue,” DA Davidson’s Gil Luria said in a note.
As of the end of the third quarter of 2023, 112 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Adobe Inc. (NASDAQ:ADBE). The biggest stakeholder of Adobe Inc. (NASDAQ:ADBE) was Ken Fisher’s Fisher Asset Management which owns a $2.3 billion stake in Adobe Inc. (NASDAQ:ADBE).
Here is what Polen Global Growth has to say about Adobe Inc. (NASDAQ:ADBE) in its Q3 2023 investor letter:
“Both Alphabet and Adobe’s businesses continue to perform well. With respect to Adobe, the most recent quarter delivered more of the same with constant currency revenue growing 13%, margin expansion, and over 2% of shares outstanding repurchased for non-GAAP earnings growth of over 20%. We believe its approach to GenAI through Firefly, which guarantees safe content because it trains on Adobe Stock, will continue to be attractive to enterprises. The counter to GenAI, and something we are keeping an eye on with Alphabet and Adobe, is that it requires heavy investment. While both businesses can leverage their scale and manage costs in other areas, we expect the investment in future growth through GenAI will weigh on company-wide margins over the near term.”
7. Salesforce Inc. (NYSE:CRM)
Number of Hedge Funds: 122
Salesforce Inc. (NYSE:CRM) ranks 7th in our list of the stocks that can make me rich in the next ten years, according to ChatGPT. Salesforce Inc. (NYSE:CRM) is getting attention due to its Cloud and AI capabilities. Earlier this year Salesforce Inc. (NYSE:CRM) announced integration of AI features with its marketing platforms. During the third quarter, the company’s adjusted EPS came in at $2.11, beating estimates by $0.05. Salesforce Inc.’s (NYSE:CRM) revenue increased by about 11.2% year over year to $8.72 billion, meeting estimates.
Insider Monkey’s database of 910 hedge funds shows that 122 hedge funds reported owning stakes in Salesforce Inc. (NYSE:CRM). The biggest stakeholder of Salesforce Inc. (NYSE:CRM) was Ken Fisher’s Fisher Asset Management which owns a $2.8 billion stake in Salesforce Inc. (NYSE:CRM).
Harding Loevner Global Equity Strategy made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q2 2023 investor letter:
“Salesforce, Inc. (NYSE:CRM), a company we’ve owned since 2019, recently added ChatGPT-like capabilities onto its existing Al module, Einstein, to support its internal sales efforts and customer-facing software. For example, Einstein GPT can help generate marketing emails tailored to specific clients by using Salesforce’s customer database and past email correspondence to learn the most effective approach for each client. Einstein GPT is also different from off-the-shelf LLMS in three important ways: It keeps personal identifiable information private and secure, compared with external tools that retain anything a user enters. It employs the latest data in Salesforce’s system, as opposed to the sometimes-stale public data that train generic models. And generative Al capabilities can be integrated with other Salesforce offerings; the company has already introduced Slack GPT and Tableau GPT, Al-equipped versions of its workplace collaboration and analytics tools.”
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Funds: 134
Apple Inc. (NASDAQ:AAPL) ranks 6th in our list of stocks ChatGPT says will make me rich in the next ten years. Apple Inc. (NASDAQ:AAPL) shares have gained about 53% in 2023 through December 7. Bloomberg recently reported that Apple Inc. (NASDAQ:AAPL) plans to launch new versions of the iPad and MacBook Air early next year.
As of the end of the third quarter of 2023, 134 hedge funds had stakes in Apple Inc. (NASDAQ:AAPL).
Here is what Claret Asset Management has to say about Apple Inc. (NASDAQ:AAPL) in its Q3 2023 investor letter:
“We have mentioned in the last letter that the “magnificent seven”, including Apple Inc.,dominated the performance of the S&P 500. We might have left you with the feeling that we are bearish because we don’t find the Magnificent 7 attractive. Let us make it clear: we are just not so pessimistic as to believe there are only 7 growth opportunities in the entire global equity market. In fact, we are optimists and think opportunity is abundant. Just not in everyone’s current 7 favorite stocks.”
Click to continue reading and see 5 Stocks ChatGPT Says Will Make Me Rich in 10 Years.
Suggested Articles:
- 16 Richest Hedge Fund Managers in the World
- 13 Cash-Rich Dividend Stocks To Buy Now
- 10Stocks ChatGPT Said Will Make Me Rich in 10 Years
Disclosure. None. 15 Stocks ChatGPT Says Will Make Me Rich in 10 Years was initially published on Insider Monkey.
