I’ve become convinced that there are very few times in life one can take advantage of businesses that both happen to be “best in class” in their respective niche markets, but also at attractive (or at least relatively attractive) valuations.
Microsoft Corporation (NASDAQ:MSFT) is a stock which is never cheap, and one which continues to provide investors with a healthy dose of growth, in a market where finding such reliable growth comes at a hefty price.
Microsoft has grown into one of the top global players in cloud computing. The company continues to eat up market share in a segment which seems to represent the holy grail for the largest technology companies in America which continue to pour billions of dollars into this tech segment.
The company’s earnings provide consistent and reliable growth, and the company’s finance team has garnered a reputation for being overly conservative in the past, generating excitement for investors each and every earnings report.
This conservative reporting mantra exhibited itself in late February when Microsoft was among the first companies to warn on revenue projections due to the recent pandemic.
Microsoft fits the bill in almost every way for long-term investors looking to spice up their portfolio with some growth (and high-quality growth at that).
If you’re the Warren Buffett type who prefers to steer clear of any and all tech companies, think of Microsoft as a utility more than a tech company. Just like homeowners will continue to pay their gas, electricity and garbage bills, businesses will continue to pay their Microsoft license fees because they have to, not because they want to.
Invest wisely, my friends.
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