How People Are Using AI For Investment Optimization

Elon just dropped Grok 4 overnight. Early testing shows it blowing away most other models. So this morning, I ran it through a test of my own… When Grok 3 came out in February, I asked it 3 real-life questions to gauge how good the model is. These are actual questions I needed the answer to, which is harder to game than an AI benchmark. So today, I posed the same 3 questions to Grok 4. Let’s see how it does! 1) Grok as Investment Analyst. When I was testing Grok 3 in February, I was planning on making some changes to my investment portfolio. I’ve since made those changes. But could I do even better? Let’s ask Grok 4. Here’s the prompt I used: “Assume I have a portfolio of index funds. My goal with this portfolio is long term growth. How should I allocate this portfolio across different types of index funds? Consider options like US index funds, foreign stock index funds, etc. I am 39 years old, so my time horizon is long. My risk tolerance is high. What would be the best allocation, given all this information? Use the best research you can find to support your answer.” Grok gave a great answer here. It recommends a 90/10 stock/bond split. It also mentions that some sources advise 100% in equities for people like me. Within the stock portfolio, Grok suggests a 60/40 split between US and foreign stock funds. It also gives recommendations from a range of sources, which suggest anywhere from 20-40% in foreign funds. This aligns pretty well with my current allocation, which is 100% stocks and 66/34 between US/foreign. So, I won’t be changing anything for now. Grok 4 did a great job, but it wasn’t much different from Grok 3’s response. It also let one unreliable source slip in: a random Reddit thread. Overall, Grok 4 was good but didn’t blow me away in this first round. I’ll give it a B+. 2) Grok as VC Scout. Birth rates in America and much of the world are below replacement levels. I think that ways to increase fertility is one of the best bets in startupland today. So, can Grok 4 help me find some great startups working on this problem? Let’s find out… Here’s my prompt: “What are the most interesting startups at pre-seed stage working on solutions to increase fertility? Consider startups to lower costs and improve effectiveness of IVF, and also startups to improve egg health for older women, among other possible ways to boost fertility. Please only show me startups that have raised $750,000 or less in funding.” Grok gave me a lovely table with some very interesting companies in it. It included all the info I needed, like amount raised and a brief overview of the startup. Grok 4 did a way better job than Grok 3 on this task. Grok 3 often pulled in startups that were way too late stage for me. Grok 4 accurately found the amounts each company has raised, excluding ones that have raised too much. I’m giving Grok 4 an A on this round! 3) Make My Meetings Better. I’ve got 3 founder meetings coming up this afternoon. How can I do the best possible job on them? Here’s my prompt to Grok 4: “As an angel investor, I meet with a lot of startup founders. I want to do the best job I can in those meetings. What are some tips to perform better, be more helpful, and learn more about the startups I meet with?” Grok 4 gave some fantastic advice here, including some sample questions. It also addressed other important aspects of angel investing, like diversification. Grok 3’s response to this question was good, but more limited to the meeting itself. Grok 4 went further. I’m giving Grok 4 an A+ here! Wrap-Up Overall, Grok 4 was very impressive and a significant step up from Grok 3. I’m giving this new model an A-. If Grok could improve sourcing a bit, I’d bump it up to an A. Grok 4 is the best model I’ve used so far. I recommend trying it yourself. It’s available via subscription for $30/month or $300/year. There’s also Grok 4 Heavy, designed for very complex science and research questions, at $300/month or $3000/year. I haven’t tried that one yet, but I’m tempted… Grok 4 is also available via API. If you’re a founder, consider building Grok 4 into your product. I’m excited to see how OpenAI, Google and others respond!