A 45-year investing veteran with millions in gains explains his recent use of artificial intelligence to pick a stock ETF, focusing on downstream AI plays in biotech. His thesis: small biotech companies will benefit from AI-driven medical breakthroughs and potential buyouts by big pharma.
To validate this, he consulted ChatGPT, which cautioned that AI benefits may accrue to platform winners and large caps, suggesting diversified exposure via ETFs. He then used Microsoft Copilot to identify specific ETFs, including the ALPS Medical Breakthroughs ETF (SBIO), designed for small- and mid-cap biotechs in late-stage trials-a prime acquisition target.
After further research, he bought 300 shares of SBIO at $46.33. Three days later, his position was up about $650. The takeaway: AI accelerates research, but final decisions require human due diligence.