I asked ChatGPT for the best 3 UK stocks for me to buy for 5 years. Here’s what it said

Ben McPoland asked the popular AI chatbot to name the best UK stocks for him to buy in 2025 and hold to 2030. The results were unexpected.

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Generative artificial intelligence (AI) is already impressive today. It can bash out Shakespearian sonnets, write code, and summarise lengthy documents. I recently used it to translate a foreign menu into English, which it did in seconds. But can it identify market-beating UK stocks yet?

To find out, I put ChatGPT to the test, asking it to name the best three UK stocks for me to buy today and hold for the next five years. I instructed it to consider investment trusts too, if it deemed them worthy.

Let’s take a look at what it picked.

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The results

Taken together, ChatGPT said the following three investments offer diversification, income, growth, stability, and exposure to a “megatrend“. At first, I was a little surprised at the names it spat out.

  • F&C Investment Trust — The chatbot said this trust offers diversified exposure to both developed and emerging markets, as well as boasting over 50 years of consecutive dividend growth
  • Unilever — According to ChatGPT, Unilever is “low-risk” and can be the defensive cornerstone of my portfolio due to its global footprint and resilience to economic downturns
  • The Renewables Infrastructure Group (LSE: TRIG) — The app’s final pick is aligned with the megatrend of combating climate change due to its focus on wind and solar power generation

My immediate thoughts

F&C Investment Trust certainly offers stability and diversification — it’s 156 years’ old and holds over 400 different stocks! These include Nvidia, Microsoft, Apple, Mastercard, and nearly every other large firm on the planet.

However, I fear its portfolio’s far too diluted with too many stocks. Over the past five years, F&C’s basically mirrored its global index benchmark. Not bad. But the best UK stock to buy till 2030? I disagree. ChatGPT failed to say F&C’s dividend yield‘s just 1.37%.

The Unilever pick wasn’t too much of a surprise, although it wouldn’t be in my top three choices. The consumer staples giant has faced sluggish growth and shareholder dissatisfaction in recent times. Its share price has gone nowhere for years. I see Unilever as a very uninspiring pick.

Finally, I own shares of Renewables Infrastructure Group for the dividend. But there’s growing pushback against green energy policies across Europe, while higher interest rates continue to present challenges for debt refinancing and new renewable projects.

It does offer an 8.44% dividend yield, but I’ve been keeping an eye on the dividend cover, which looks thin. This trust doesn’t seem set up for juicy dividend hikes across the next few years.

Again, I’m not convinced it’s among the very best UK stocks to buy. ChatGPT didn’t offer any analysis as to why it’s set for a big rebound (earnings growth, undervaluation, improving balance sheet, etc).

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Fool vs AI bot

Stepping back, I’m not that impressed with this trio, considering that ChatGPT — powered by a gazillion Nvidia GPUs — had the whole of the London Stock Exchange to choose from. But perhaps it sees something I don’t. Maybe these stocks will handily beat the market.

What I’m going to do is track these shares each year to see how they get on. And I’ll compare them with my own like-for-like picks below:

  • FTSE 100 fund — Scottish Mortgage Investment Trust
  • FTSE 100 blue-chip — AstraZeneca
  • FTSE 250 fund — BlackRock World Mining Trust

But here’s another bargain investment that looks absurdly dirt-cheap:

Like buying £1 for 31p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Ben McPoland has positions in AstraZeneca Plc, BlackRock World Mining Trust Plc, Renewables Infrastructure Group, and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Apple, AstraZeneca Plc, Mastercard, Microsoft, Nvidia, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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