We own 325 shares of MSFT as a long-term investment. At the current price (close as of 05/26/21) these shares are worth about $82,000. This investment is quite unlike just about all of the top ten. For one thing, it is not really a tremendous growth stock, nor is it a very good dividend stock. But there are some great things about Microsoft that give me pause each time I think of pressing the “Sell” button.
Why Does MSFT Qualify for the TOP TEN?
Think Gorilla. Think King Kong. If you think about software, you probably think Apple and Microsoft. Perhaps Oracle or Xerox might also come to mind. Microsoft, while despised by many for bugs and multiple security fiascos is still my go-to software. I use Office365, which is a money freight train that runs for businesses and individuals. Once you are hooked, it is hard to get off of that train.
In the Information Technology sector, Seeking Alpha ranks MSFT as 5 out of 517 technology investments. AAPL (Apple), surprisingly, is number 9. I’ve never heard of the top 4, and none of them pays a dividend. (NOTE: I do have 200 shares of AAPL as well, but I have sold shares of Apple to lock in a 396% gain. AAPL is still a great company, but I am not inclined to buy more shares at this time.)
In the Systems Software category, Seeking Alpha lists Microsoft as number one out of 40 possible choices.
I might sell MSFT at some point in the future, but it is unlikely. My shares are up 190% since I purchased the first shares in October 2017. In other words, in four years the return on my investment has been remarkable.
Our Other Tech Investments
MSFT and AAPL are not the only tech stocks we own. We also hold shares of CSCO, INTC, IBM, STX, ADP, AVGO, GLW, PLTR, PSTG, QCOM, RPD, TXN, WDC, NTAP, SSNC and DDD. However, stocks like PLTR, PSTG, RPD, and DDD are more short-term speculative investments. Companies like CSCO, INTC, IBM, STX, and TXN are more long-term focused.
ETN’s Sector, Industry, and Market Cap
Sector: Information Technology
Industry: Systems Software
Market Cap: $1.89T (yes, trillion)
Headquarters: San Diego, CA, founded in 1969
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL); Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for small and medium businesses, large organizations, and divisions of enterprises. Its Intelligent Cloud segment licenses SQL and Windows Servers, Visual Studio, System Center, and related CALs; GitHub that provides a collaboration platform and code hosting service for developers; and Azure, a cloud platform. It also offers support services and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification to developers and IT professionals on various Microsoft products. Its More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising. It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, and other devices; Gaming, including Xbox hardware, and Xbox content and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising. It sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores. It has a strategic collaboration with DXC Technology, Dynatrace, Inc., and Micro Focus; and a partnership with WPP plc. The company was founded in 1975 and is headquartered in Redmond, Washington.