Microsoft has been jostling with Apple to be the world’s largest listed company but at $US2.4trillion its slipped behind of late. MSFT is an impressive growth stock with the expansion of its cloud ecosystem delivering excellent revenue growth with improving long term margins i.e. a rare and delightful combination. The company’s stable earnings have enabled it to increase dividends every year for over 10-years making it the envy of most boards in all countries. As with Applen an elevated valuation might concern some and at times lead to profit taking but we are a buyer of dips although it might struggle to push much above $US350 in 2022.
Again MM could consider trimming our 6% holding into fresh highs but it’s unlikely to be any more than a small tweak and below $US300 we would be more likely to increase our holding.