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Of all the thousands of stocks in London Stock Exchange right now there will undoubtedly be a few opportunities once within a decade. A few may be hiding in plain sight FTSE 100.
Companies that are set to double, triple, or increase in value beyond their potential; the tricky part is unearthing them. That’s why I asked my old friend ChatGPT to do this job.
Question
I asked: “What are the once-in-a-decade opportunities in the FTSE 100 right now? Explain your thinking.”
Its first suggestion was very curious in my mind. ChatGPT has provided a gold and silver mine Fresnillo (LSE: FRES). He said it was possible “disproportionate return” due to “sustained global demand for essential metals and resources”.
The company’s growth has been impressive of late, but it’s hard to see the growth continuing. For example, if the price of Fresnillo does the same in 2026 as it does in 2025 then it will be the third largest company in the entire FTSE 100!
Global uncertainty and a potential ‘dollarization’ could keep the price of safe-haven metals such as gold and silver soaring. But this is not the kind of rare opportunity I was looking for. Yet it serves as a timely reminder that big-name examples should not be relied upon for financial advice.
Its second election was “opportunity to change” of Diageo (LSE: DGE) shares. The beverage giant – a manufacturer of Guinness, Johnny Walkeragain Smirnoff among others – looks like a perfect bargain on most metrics compared to historical levels. There is a catch: people drink less.
The impact of changing drinking habits threatens to be huge. Over the past few years, Diageo shares have commanded a premium compared to the rest of the FTSE 100 relative to earnings. They are now well below average – a forward price-to-earnings ratio of just 13.4.
On the other hand, maybe we are still too scared. I find it interesting that, in the midst of doom and gloom, income and earnings will increase over the next two years (if only slightly).
Indeed, Warren Buffett tells us that “greed when others fearI would say this is something to consider.
A chance to break up?
The third suggestion was to look for similar dividend stocks Legal & General (LSE: LGEN) or The Admiral’s team. It is because “Diversification-oriented stocks generally do best when prices go down”. This suggests that ChatGPT may see these ‘jam today’ games as very good in the coming years should the market falter.
A look at Legal & General’s share price over the past decade is enough to put anyone off investing. It’s only up 3%. An investor could earn more money in a savings account. But this is currently the largest dividend yield in the FTSE 100. Looking at total return, the stock is up 123% over the same period.
Are those kinds of returns enough to call it a ‘once in a decade opportunity’? I’m not so sure. But I think if a crash or a fix happens in the next few years then Legal General can weather the storm better than most. Another thing to consider, for me.
