Microsoft Corp (MSFT)

He's added shares twice in recent weakness. Nobody cared that they delivered a fine set of figures. Make no sense!

Great company. Fabulous CEO. Always trades at a premium, and that's kept him away. He only has space for 20 stocks, and he sees better opportunities in AMZN, AAPL, and GOOG.

MSFT is a must-own with the AI themes, but right now its PEG is 1.4x. AAPL is another must-own, but pricier at 2.7x. Both are all over the AI themes. He wouldn't trim either.

Concerns over ramping up generative AI in their operations was a big reason why the stock got hammered today, but he likes the stock at this level. Too much cost ahead of potential gains. Their CFO is known for underpromising and over-delivering. She sets a low bar like she did in last night's conference call. The CFO didn't include in her forecast the huge revenue stream that will come from gen AI. MSFT did post an EPS beat. Shares sold off today but that selling will end. That's when you buy.

With the stock up 40% YTD there was bound to be some profit-taking on a not-100%-perfect quarter. But we continue to view it as a premier growth company for the long term. 
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Owns it, likes it, talking about taking weight higher. Catching the AI trade as a leader along with AMZN. AI is forecast as a $50B industry in a couple of years. Every little business has MSFT on its desktops. Thinks it will go higher.

Also, Nvidia, Google and Meta, all have the money to invest in this and buy smaller companies for the long-term.

Still has a decent runway. He targets $375. If they are allowed to buy Activision, it will add to their cloud and other businesses. A core holding. Also are a major player in AI. They have chat GPT embedded in their APIs.

A great business with recurring revenues, with high-margin software revenues. Cloud will re-accelerate growth. AI will drive an upgrade cycle.

He has traded it and wouldn't buy now. It is toying with its previous peak in late 2021 and could meet resistance.

He trimmed his MSFT holding because valuations were getting high.

He doesn't sell it, just trims. In all the right areas. Exposure to cloud, gaming, AI, enterprise software. Pricing power, global. Expensive, but not egregiously. Sees 10-15% compound growth for many years to come.

It has had a big run-up and should level off at 30X earnings which is over-priced. The CEO sold half his shares at the end of 2021. He holds but is not buying more. A good time to take some profit.

Very strong business, but shares very highly valued.
Wait for shares to fall before buying.
Excellent A.I. prospects.
Cutting edge of technology. 
Leader in economy.