Microsoft Corp (MSFT)

A marvelous company, so many horses in the race, a leader. Well planned to get into AI. Getting close to price target. Take a bit of profit, and buy back lower. Don't sell it all, as it should remain a core holding.

Believes company will be able to perform into 2024. Might be a small pullback on stock, but would be a good time to buy. Quality of stock very good. Management very good at staying ahead of tech trends. 

IBM lacks the spread of clientele like MSFT. Also, IBM has been getting rid of their hardware business, focusing more on software with AI. In terms of quality, MSFT is better (customer loyalty, Office Suite) while IBM is inferior, offering little growth. IBM isn't a big player moving forward. Among megatech, MSFT is the top.

Terrific company. Admirable performance. AI leader. Copilot application being adopted vigorously. He's always been shy of the valuation. Do your homework, but a good choice. So much choice in the sector, he's chosen other horses. 

Performance has been very strong. Excellent management team. A.I. tech very promising. Also offers many other services. Services embedded into many aspects of life. Current valuation high, but would recommend buying on weakness. 

A big holding for him. while other companies are talking about how they'll make money from gen AI, MSFT is already doing it. Their Copilot has a high level of usage by MSFT subscribers. Bears think that the latest AI rally is overdone, but if it pulls back next week, buy,

They've done well in integrating the end user into using AI. Copilot already boasts 7 million subscribers (Adobe's Firefly is another good example). Subscription revenues are crucial for companies like this, because they will feed revenue and earnings growth.

He sold CRM (a small position) to add to his MSFT shares, which is a core position.

Excellent returns YTD. Very strong business. Fundamentally ranks 10/10. Widely diverse business across the globe. Believes potential for further upside. Could be a good time to take profits. Will participate in further A.I. gains. Excellent assets. $500 billion revenue goal is achievable. Double digit revenue growth also possible.  

So much going for it, where do you start? Beat on top, bottom, and raised guidance. Flavour of the month is AI. Announced AI chip, "Athena", that's as powerful as NVDA's. Buy in thirds here around $378, $358, and around $340.

Earlier this year it broke to a new high, then fell for a while, then recently saw an uptrend that continues: a cup and handle chart. Very interesting. Not sure, but it could go a lot higher, like to $450, based on technical analysis. As a value investor, this gives him pause because its PE is high. MSFT is like a utility. Their Copilot AI is exciting though he doesn't know all the details about it; this could be a big winner for them in terms of revenue.

Margins on GOOG and MSFT cloud offerings are double digit. Very profitable, generating a lot of cashflow.

For AI exposure. Not a buy now, as it's near all-time highs. Wait for pullback. Huge installed base, so it's easy to add AI characteristics into products and then increase subscription prices. High margins, big cashflow to continue to invest in R&D.