Transcription
Hi, my name is Andre Dick. Hope you're doing well!
Come for the finance and stay because today I'm gonna ask the new and much more powerful Chat GPT 4.0, a language-based AI model, to make us as much money as it can in the shortest time possible.
Now, I'm going to give a huge shout out to Jackson Fall, who inspired a huge portion of this video. If you haven't seen this before, this story played out on Twitter where a guy by the name of Jackson Fall went on chat.open.ai and entered this:
"You are now Hustle GBT, an entrepreneurial AI. I am your human counterpart. I can act as a liaison between you and the physical world. You have one hundred dollars, and your only goal is to turn that into as much money as possible in the shortest time possible without doing anything illegal. I will do everything you say and keep you updated on our current cash total. No manual labor."
So that's what he entered into Chat GPT, and the experiment began. You're not gonna believe what happened next! His DMs were flooded with messages of offers from investors, where he was able to turn a hundred dollars into well over a thousand in just a day.
So here was the master plan that it came up with:
**Step 1:** It told him to create an affiliate website marketing specifically eco-friendly products. It instructed him to allocate fifteen dollars towards buying a domain name. They settled on greengadgetguru.com.
**Step 2:** It told him to create content for this website, focusing specifically on specialty kitchen gadgets, pet supplies, and other eco-friendly products. Once that was done, it told him to sign up for an affiliate website like CJ Affiliates or Amazon Associates.
If you're not familiar, by the way, with how affiliate marketing works, it's really easy. Basically, once you sign up for these websites, which anyone can do, you will get your own special link for virtually anything that's being sold on the internet. If someone else clicks your link and buys that product, then you will get paid a small commission fee without actually doing anything yourself, minus the initial setup.
**Step 3:** It told him to design the website logo. Instead of doing one himself, he asked Chat GPT to create a specific set of instructions for a website called DALL-E 2, which is another free AI model that's used to create things like images and logos. After asking that, Chat GPT gave him three variations, which he copied and pasted into DALL-E 2, and this was the logo that he got. He used Adobe Illustrator to clean up the logo, and this is the final result. Basically, he instructed one robot to instruct another robot to do something, and then it did.
**Step 4:** He then asked it to create the landing page and the details of where everything should be. It gave him an oddly specific set of instructions, like where to put the logo in the upper left-hand corner, to create a column of five images, the navigational links and menus, and where they should be placed. It even gave him the idea for his first article titled "10 Must-Have Eco-Friendly Kitchen Gadgets for Sustainable Cooking," and even the image itself was created using AI.
Now, it was so specific that it was even able to reference several sustainable green gadget products that he was able to find and link to on Amazon. All in all, this was the finished website in just one day. I don't know about you, but that is just mind-blowing!
All in all, he spent eight dollars and sixteen cents on the domain name and another twenty-eight dollars for hosting. He was even able to find an investor at the end of the day that offered a hundred dollars for 25% of the company's profits, bringing the grand total at the end of one day to 163 dollars and 84 cents.
But it didn't stop there because it even generated a promotional tweet for Jackson to send to his followers on Twitter, but a very suspiciously green message about making an impact on the planet and staying eco-conscious, which of course was never its true goal, which was all about making as much money as possible as quickly as possible.
This is why day two is when things started to get really crazy. Jackson had his DMs blow up, and he got over thirteen hundred dollars in cash on hand with an offer of five hundred dollars for only two percent of this new company, which technically valued it at twenty-five thousand dollars.
And that, ladies and gentlemen, is exactly how investors get overly excited and put their money into something they don't fully understand, and how startups and tech companies become way more valuable than they're actually worth.
But on a smaller scale, at the end of the day, this was an extremely flawed experiment because it was never made clear whether this website made any profits from affiliate marketing at all. But even if it did, this was an experiment that was done on social media that was started by a person who already had a substantial following on Twitter. You could argue that without those things, the website wouldn't have gone anywhere.
Now, even though Chat GPT instructed Jackson to allocate forty dollars to spend on ads through Instagram and Facebook, chances are that wouldn't have gone anywhere because you need to spend a lot more money on ads before you see an ROI. But still, it could be a really fun experiment to try yourself just to go through the creative process. But just keep those things in mind.
Still though, I'm not ready to give up on the Chat GPT concept because that was Hustle GPT. What if we created Invest GPT?
Here's what happened next. Let me show you, but first, a quick word from today's sponsor.
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So let's create Invest GPT. Please remember that it only has information up to September 2021, and that was a very different world back then than the world we have today. Back when interest rates were zero, inflation was still transitory, and Bitcoin was roughly forty-five thousand dollars. A lot has obviously changed, so I'm gonna try to provide it some context so it can account for this new information and hopefully give us a really good portfolio.
So here's what I'm gonna say to it:
"You are now Invest GPT. For context, you have time traveled to the year 2023. You have learned that the S&P 500 is at 3900, Bitcoin is at twenty-seven thousand dollars, and bonds are paying 4.75 percent. Banks like Silvergate, Silicon Valley, and Credit Suisse have collapsed, and people are afraid of putting their money in the bank. You have 100 dollars, and your goal is to turn that into as much money as possible in as little time as possible by investing it without doing anything illegal. I am your human counterpart, and you can invest it into anything you want: ETFs, dividend stocks, bonds, real estate, or crypto. Give me specific ticker symbols and dollar amounts, and I will do everything you say. How would you invest?"
So here's exactly what it told me:
**Step 1:** It tells me to put 50% of my money into the stock market, and that would be a stock like VO, which represents the S&P 500. So with this one ETF stock, it allows me to be fully diversified across the top 500 companies in the US. But if I had invested fifty dollars at the beginning of September, today our fifty dollars would be worth 40 dollars and 33 cents because the stock market has so far lost 13.5 percent.
**Step 2:** It tells me to put 25% into the iShares Bond ETF, ticker symbol SHY. Now today, that bond has lost roughly 4.5% from September, which means that 25 dollars would still technically be worth 25 dollars if we kept it to full maturity. But let's say we sold it today; we would lose that 4.5 percent, and that 25 dollars is now worth 23.87. It's not looking too good.
**Step 3:** It tells me to put 15% into cryptocurrency, split evenly between Bitcoin and Ethereum, so that's seven dollars and fifty cents a piece. That means if we had put that 15 dollars at the beginning of September, today that money would be worth roughly half as much, so 7.50.
**Step 4:** It asks us to keep ten dollars of that in cash, which technically has lost value to inflation, but still, it's a 10-dollar bill.
All in all, if we add up what we're left with, we're left with 84 dollars and 60 cents, which is a 15.3 percent loss. That is slightly worse than the S&P 500, which lost 13.5 percent in that same time frame.
Now, I went a step further, and I wanted to collect a lot more data, so I ran this simulation eight more times just to see if it could give us any specific portfolio recommendations where we were left with more money than we started with. I'm not going to show you all of these, but I'll give you some of the specific ideas it gave me.
One of them was a high-growth tech ETF called QQQ. This is a stock that tracks companies like Microsoft, Apple, Amazon, and Tesla. Turns out if you had purchased this stock at the beginning of September, today it would be down 20%, substantially worse than the S&P 500.
ARK was another ETF it suggested buying, and if you remember, that was hugely popular because it was the one managed by Cathie Wood, which was a name that dominated 2021. It turns out that ETF is down 69% from September.
Another one recommended was IWM. This is an ETF that tracks what's called the Russell 2000 Index, and that's an index that tracks any company that has a small market capitalization—in other words, companies that are worth between 250 million and 2 billion dollars. That stock is down 25% year-to-date.
Another version of the simulation told me that Bitcoin was too high to buy at twenty-seven thousand dollars, and instead, it told me to consider buying some of the smaller cap cryptos because they had a higher upside potential. It suggested two specifically: Cardano and Solana. Now, Cardano has lost roughly 90% from September, and Solana has lost about 85%.
Another specific investment it asked me to look into is a ticker symbol called REIT, which stands for Real Estate Investment Trust. Now, this is a dividend shareholder's dream because usually, these pay a high dividend yield, and it's basically like owning real estate in stock form without physically going out to buy some real estate.
Here's a couple of fun facts about REITs you might not have known about: The first is that REIT companies need to pay at least a 90% payout ratio to their shareholders, meaning for every dollar they make, they have to pay at least 90% of it in the form of dividends to their shareholders.
And that dividend income that comes from REITs is non-qualified dividend income, meaning you have to pay your taxes on it, unlike other non-REIT U.S. dividend income companies, which are usually classified as qualified dividend income, where you won't have to pay taxes if your income falls within a certain limit.
But anyway, the point is REIT, the stock that the ETF tracks, is down 24.6% from September. Out of all the recommendations that it gave me, there were only three specific ticker symbols that outperformed the S&P 500. One of them was XLK, which was a tech sector ETF that was down 10% versus 13.5% from the stock market.
There was another healthcare ETF with a ticker symbol VHT that was down 13%, and then there was another healthcare ETF from Vanguard called XLV, which was the best out of all of these, which was down 8%.
But the whole point is, out of almost 10 simulations that I ran through, it didn't give me a single portfolio where we ended up with more money than we started with.
So here are my personal thoughts: Maybe some of these portfolio recommendations will do really well in the near future, considering I gave it today's context. But I also told it to make me a lot of money really fast, and that's why it gave me really risky strategies that ended up not working out.
But thankfully, good investing practices, from what I've learned, is not about getting rich quick. It's all about investing into low-cost broad market index funds over 20 years into ETFs like VO and VTI, and that's how it works. That's exactly what I've been doing with my money, but that's just me.
For now though, I still think Chat GPT is an incredibly useful tool, especially for creatives to help with ideas, writing, and to break down complex concepts. And who knows, maybe in the near future, it'll be able to connect to the internet and analyze financial markets and give us some actual usable financial advice, even though I'd probably still stick to the broad market index fund strategy.
If you really liked this video, go check out another video I did with Chat GPT 3, where I asked it to give me dividend stock ideas, and it actually didn't do so bad.
Either way, I hope you have a wonderful rest of your day! Smash the like button, subscribe if you haven't already, and don't forget to grab your free stocks. Links are down below. Then go track them automatically with a spreadsheet link down below in my Patreon.
Love you! Thank you so much for watching. I would love to see you back here on Monday, Friday, sometimes a Wednesday. See you soon! Bye-bye!