How to Use AI to Develop a Long-Term Investing Strategy

Find Stocks to Hold for the Next Decade

March 18, 2025

Dear Investor,

Crafting the right long-term investing strategy can feel overwhelming — especially with so much information out there.

That’s why AI is your key for cutting through the noise.

Today’s newsletter will walk you through five proven long-term investing strategies and show you how to use AI tools like ChatGPT to refine your approach, research stocks, and make informed decisions.

Let’s dive in!

1. Growth Investing

Goal: Invest in companies with above-average revenue and earnings growth.

How to Use AI:

Prompt Example:
"What are the top growth stocks with strong revenue and earnings growth over the last 5 years?"

What Else Can It Do?

  • Identify companies with consistent double-digit growth.

  • Highlight sectors driving growth (e.g., tech, renewable energy).

  • Provide forward-looking analyst estimates for earnings and revenue.

Example Stocks:

  • Nvidia (NVDA): Leading the AI chip market with consistent growth.

  • Amazon (AMZN): Expanding into new sectors and maintaining market dominance.

  • Shopify (SHOP): Strong revenue growth as e-commerce expands.

2. Value Investing

Goal: Invest in undervalued companies with solid fundamentals.

How to Use AI:

Prompt Example:
"Find undervalued stocks with low P/E and P/B ratios, strong cash flow, and consistent dividends."

What Else Can It Do?

  • Screen for low P/E and P/B ratios.

  • Identify companies with high free cash flow and strong balance sheets.

  • Flag companies that are trading below their intrinsic value.

Example Stocks:

  • Berkshire Hathaway (BRK.B): Trading close to book value.

  • Johnson & Johnson (JNJ): Consistent dividend growth and strong cash flow.

  • Pfizer (PFE): Low valuation and solid pipeline of products.

3. Dividend Investing

Goal: Build a steady income stream from dividend-paying stocks.

How to Use AI:

Prompt Example:
"List the top dividend-paying stocks with high yields, low payout ratios, and consistent dividend growth."

What Else Can It Do?

  • Find stocks with above-market dividend yields.

  • Screen for sustainable payout ratios and consistent dividend increases.

  • Identify companies with a long history of increasing dividends.

Example Stocks:

  • Procter & Gamble (PG): 67 years of consecutive dividend increases.

  • Coca-Cola (KO): Strong brand and consistent dividend growth.

  • Realty Income (O): Monthly dividend payer with a 5%+ yield.

4. Index Investing

Goal: Track the overall market’s long-term growth through index funds and ETFs.

How to Use AI:

Prompt Example:
"What are the best index funds for long-term investing based on expense ratios and performance?"

What Else Can It Do?

  • Compare historical returns and expense ratios.

  • Recommend diversified ETFs for broad market exposure.

  • Highlight low-cost options for maximizing long-term returns.

Example ETFs:

  • Vanguard S&P 500 ETF (VOO): Tracks the S&P 500 with low fees.

  • iShares MSCI Emerging Markets ETF (EEM): Exposure to fast-growing economies.

  • SPDR Dow Jones Industrial Average ETF (DIA): Tracks blue-chip stocks.

5. Defensive Investing

Goal: Minimize risk by investing in stable, non-cyclical companies.

How to Use AI:

Prompt Example:
"Find defensive stocks with low volatility, consistent earnings, and strong balance sheets."

What Else Can It Do?

  • Screen for low beta and stable cash flow.

  • Identify companies in sectors like utilities, healthcare, and consumer staples.

  • Recommend stocks that tend to hold value during downturns.

Example Stocks:

  • Johnson & Johnson (JNJ): Healthcare giant with consistent earnings.

  • Duke Energy (DUK): Utility company with stable cash flow.

  • PepsiCo (PEP): Diversified product base and global brand strength.

Pro Tips

  • Ask AI the Right Questions: Start with the example prompts and adjust based on your goals.

  • Mix Strategies: Combine growth, value, and defensive stocks for a balanced portfolio.

  • Monitor Performance: Track AI-generated insights and adjust as needed.

  • Stay Patient: Long-term investing is about consistency — not timing the market.

By combining AI-generated insights with proven investing strategies, you can build a portfolio designed to stand the test of time.

Stay informed, stay disciplined, and invest wisely!

Best regards,
StockTrades.AI Newsletter

Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.