Microsoft: Ultimate Definition Of An Economic Moat

Jan. 17, 2022 9:22 PM ETMicrosoft Corporation (MSFT)51 Comments
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Cappuccino Finance
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Summary

  • Microsoft is the whole package deal, encompassing past (technology leader since 80s), present (net income of $68 B), and future (metaverse, AI, etc.).
  • Economic moat is about as wide as it gets. When is the last time you turned on a computer and expected something other than a Windows logo to show up?
  • Their revenue is still growing at 13% (5-year average) 40 years after DOS, and there are multiple tailwinds that can accelerate the growth.
  • I expect 15-25% upside from the current level.
Bill Gates Steps Down From Microsoft"s Board

Jeenah Moon/Getty Images News

Investment Thesis

Microsoft (NASDAQ:MSFT) provides products and services related to high tech devices, software, cloud computing, and AI. They have been a dominant leader in the technology sector for several decades now, yet somehow manage to grow like a growth company. Most recently, Bernstein picked Microsoft

This article was written by

Cappuccino Finance profile picture
2.93K Followers
Visit me at Cappuccino Finance, I share my top picks (Value, Growth, Dividend & Growth), market outlook, and interesting ideas from super investors, based on my 12 years of experience and knowledge in stock investment and in real estate. I, Justin J. Lee, believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (University of California, Santa Barbara) in model predictive control and an MBA (Jones School of Business, Rice University). My primary focus is to identify 1) small cap companies with strong fundamentals and growth potential, 2) large cap companies going through temporary set-backs, and 3) stable companies with solid dividend yields and growth potential.

Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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