MSFT or GOOGL

[freedom2022]

Hi all,

Would you like to share which one you prefer and the reason?
I don't want to hold both stocks.
MSFT pays dividend but GOOGL not.

Thanks.

 

[38Chevy454]

Type of account, pre or after tax? That could influence the decision if taxes are a factor. Both are big dominating companies in their fields. I would probably lean toward MSFT, only because I think Google will be getting some upcoming scrutiny by govt that could affect the stock price. That's my $.02 contribution.

 

[Sunset]

I think it's silly not to hold both, since you are willing to buy each.
Unless you are planning to buy enough shares to force a seat on the board, it really only makes 1 more line on your statement.
Yet it means you would be hedging your bets, Google is mostly advertisement driven, MSFT is driven by cloud and business software.

 

[Dash man]

I’ve owned MSFT for a couple of decades. Google I only have through ETFs. My two other tech stock holdings are Apple and Broadcom. I’ve been very happy owning all three as part of my core holdings. I don’t care to hold individual stocks where most of their revenue comes from advertising and selling personal data.

 

[Montecfo]

Own both. Have added to GOOG. Awaiting lower prices for MSFT. GOOG quite a bit cheaper on earnings basis, but more downside risk heading into recession.

I like both for the long-term.

 

[NW-Bound]

I never owned either, until I recently got assigned GOOG via OTM cash-covered puts. GOOG dropped quite a bit, and the value was decent enough for me to take some risk.

Well, GOOG dropped some more, and I am currently down -12%. But that's OK. You cannot expect to win immediately with every purchase. I may add to this position gradually.

I am looking to accumulate some more tech stocks that are beaten down. I think MSFT is also fairly valued, and would not mind building a position. I will get it via writing OTM puts like I usually do.

PS. Currently, these growth 2 stocks are not commanding a higher value than the total S&P. It means I am not paying a premium for the potential growth. I like it when I am not overpaying for the growth prospect. I really don't know which one is better, but think that they are comparable. And I always want to diversify.

 

[copyright1997reloaded]

I never owned either, until I recently got assigned GOOG via OTM cash-covered puts. GOOG dropped quite a bit, and the value was decent enough for me to take some risk.

Well, GOOG dropped some more, and I am currently down -12%. But that's OK. You cannot expect to win immediately with every purchase. I may add to this position gradually.

I am looking to accumulate some more tech stocks that are beaten down. I think MSFT is also fairly valued, and would not mind building a position. I will get it via writing OTM puts like I usually do.

PS. Currently, these growth 2 stocks are not commanding a higher value than the total S&P. It means I am not paying a premium for the potential growth. I like it when I am not overpaying for the growth prospect. I really don't know which one is better, but think that they are comparable. And I always want to diversify.

Your post reminded me that I had a question for you. When you do out of the money puts, typically how far and what month (relative to current date). Similar question on covered calls.(It's more of a curiosity question.)

 

[NW-Bound]

I prefer to sell options with a very short fuse of only 1 to 2 weeks out. When a desirable stock drops 2 to 3% in a day, I offer to buy it at 2% even lower, in exchange for an option premium of 0.5 to 1% or higher.

In other words, I am willing to own the stock at a price 2.5% to 3% lower than where it is right now, and that's after it has already dropped quite a few percents after 2 or 3 consecutive days.

If the stock does not continue to drop, I don't get to buy it, but pocket the 0.5 to 1% option premium. Then wait to do it again.

Similar thing with selling call options to sell a rising stock that I own at an even higher price, for an option premium of 0.5 to 1% in 1 week. Rinse and repeat.

I can usually find something dropping a lot to sell cash-covered puts on, and something in my inventory rising a lot to sell covered calls on. I only sell options, not buy them.