The AI (ChatGPT) Stock Investing Handbook: Is Luck Involved in Picking Stocks?

Here is the response from ChatGPT for the prompt does luck play in picking stocks entered on January 17, 2023

Luck can play a role in the short-term performance of individual stocks, as market conditions and external events can cause stock prices to fluctuate in the short term. However, over the long term, the performance of a stock is generally more closely tied to the underlying fundamentals of the company, such as its revenue, earnings, and growth prospects.

That being said, even when you have done your due diligence, picked a stock based on sound fundamentals and good management, there's still a chance that the stock might not perform as expected. The market is unpredictable and there are many factors that can affect the performance of a stock, such as changes in the economy, shifts in consumer preferences, and new technologies, that can be difficult to predict.

Therefore, it's important to maintain a long-term perspective and not to rely on luck when picking stocks. Instead, investors should focus on developing a well-diversified portfolio and stick to a disciplined investment strategy based on sound research and analysis.