The Diageo (LSE: DGE) share price has taken a beating from my portfolio. I bought the company two years ago after shares tumbled following a profit warning, but since then there has been more bad news. The stock fell 25% and fell more than 50% in two years. But I hold on tight because when the mood changes, I consider it renowned FTSE100 blue-chip can recover quickly. But how long do we have to wait?

Diageo shares face many challenges. Consumers are under pressure, the United States is flirting with recession, and many drinkers are abandoning premium brands in favor of cheaper alternatives. American tariffs don’t lend a hand either. There are also long-term structural concerns as adolescent people drink less and novel appetite-suppressing weight-loss drugs may also discourage people from drinking.

My bargain purchase backfires

So I decided to ask ChatGPT for the view. I know, I know. It’s a robot, it has no view. It is also not used to select stocks. The only thing it can do is collect data found on the Internet, not offer original information. I was just wondering if it would lend a hand me understand how the market talks about stocks. So how did it go?

ChatGPT tends to lean towards the positive and assured me that there is reason for cautious optimism, saying: “Dave Smith, who has experience in Tesco AND Unileverwill take over as CEO in January. A new leader with a strong track record could steer the company back on track.”

Oddly enough, this source came from A motley fooltaken from an article I wrote. Which isn’t very useful to me. So I pressed a little harder and he replied: “Diageo is a globally recognized and fundamentally strong company, but its shares have been penalized by macroeconomic pressures and consumer trends. A recovery is possible, especially under new management, but is likely to be gradual rather than rapid.”

It’s really general. It’s almost what I expected from a robot. I decided it was time to do my own research instead.

Chance of FTSE 100 rebound

After the difficulties, Diageo’s valuation appears reasonable, with a price-to-earnings ratio of 14. It used to hover around 25. It is also a company offering significantly better dividend yield than previously, with a trailing dividend yield of 4.6%. This gives me something to hold on to while I wait for better news. Unfortunately, there isn’t much of that around.

On November 6, Diageo lowered its full-year sales and earnings forecasts, citing frail demand for Chinese spirits and frail U.S. consumer spending. Management expects organic net sales in 2026 to remain unchanged or slightly lower. No wonder investors are so depressed.

I think things may improve next year, but my hopes are on Smith’s leadership, not a sudden change in consumer habits or broader economic improvement. More patience is required, but this is investing.

Typically, when slaughtered herds start, they do so quickly. Often when investors least expect it. I don’t want to miss this. So I’ll hold on and wait until that elated day comes (I’m keeping my fingers crossed).

I think investors might consider buying this company, but only if they are willing to hold it for the long haul. This is my wrong human point of view. But I hope it contains a little more knowledge than the AI ​​is willing or able to give.