Microsoft's Lost Decade

[explanade]

I've rarely touched word processor or Excel in the past 10-15 years.

Even when I did use these in work, I wasn't generating long documents so honestly I could have used alternate products, including MS Works.

I guess there are people producing long reports and big spreadsheets all the time.

Otherwise, office productivity applications seems so 1980s in the Internet age.

 

[John0019]

Same idea, I bought 300-400 shares many years ago as it seemed like a safe dividend payer... working out really nicely

Yeah I hear you on that. Haven't quite had it for that long but current position fully funded by 100+% appreciation (sold about 1/2 ). Similar positions in AAPL and HD and close to that with TGT. Feels good to know if all of them vanished from this Earth would break even from initial investment.

 

[Montecfo]

Funny how this company that so lacks innovation just keeps growing earnings. I agree there have been huge miss-steps. But pure innovators did not have a legacy biz to protect. That is exactly why greatly successful companies do not endure-they refuse to innovate in ways that could destroy their revenue streams, keeping them open to competition.

Of course
Of course,Achieving a trillion dollar market cap, placing it among the most valuable companies in the world suggests something must be going right.

These days trashing AAPL for lacking innovation and for slow growth is the rage. The thread did not age really well did it?

I own both, recently sold some AAPL, added to MSFT more recently.

 

[Running_Man]

I have been in and out of Microsoft since this thread started and hold it today, having purchased a little over a year ago and now have an 85% gain at this point. I have a sell point if it were to hit 214 this quarter, which would drop the dividend rate for the coming year under 1%, triggering one of my valuation rules, however it continues to operate better than almost any other company:

Last three years selected financial ratios

Long-Term Debt 76,073.00 72,242.00 66,662.00
Operating Margin 39.40 41.10 43.40
% Shareholders' Equity 33.30 36.60 36.00
% Return on Total Capital 17.00 20.40 22.60
All Dividends to Net Profits 49.00 42.00 37.00

Raising the dividend 12.5% per year on average for the last five years - starting when it was a 3% dividend when 10 year US treasuries yielded 2 percent.

Additionally it has some of the best Value Line ratings for the last year, holding a 1 or 2 for timeliness the entire time and rating an 85 for price stability 90 for growth and 85 for earnings predictability. Dividends, earnings and revenues all estimated to grow 11-12% for the next 3-5 years. Additionally, unlike many in the S&P 500 it reduced share count AND debt at the same time. It is one of the most financially stable companies in the world.

https://research.valueline.com/api/report?documentID=2185-VL_20200207_VLIS_MSFT_3305_01-6TFEVRGJ5FDREC91ALEDLGH3CG&symbol=MSFT