Microsoft Corp (MSFT)

Still in his top 5. Trimmed a bit to about a 3.5% weighting, as he had a 12-month price target of $290. He's holding on, as we're going into earnings season and things will change. Lots of interesting horses in the race. Thinks ATVI purchase will go through. Decent earnings. Buy in thirds here at $280, 265, and 250.

It has fallen with the tech sector but not as much and is now at a good price. It has been an early investor in AI and signs are that this is helping the BING search engine and search engines are one of the most profitable areas in the tech sector due to advertising. BING should gain market share in this field. Microsoft has been using franchises in Office and Windows to fuel investments in the Cloud and is one of the top two players in this field. It is integrating open AI right across the tech desk. He is looking for double digit revenue growth in the next three years along with buying back of shares and increasing the dividend.      Buy 51, Hold 5  Sell 1

Leader in software sector.
Well positioned company at the forefront of change.
Open A.I. and cloud computing the future of business.
Currently beating competitors in A.I. revolution.
Expecting share price to hit $350.
Expecting video game acquisition to close.
 

Peaked at quite a high multiple, now coming down in steps. Again, when the earnings trend and the valuation trend diverge, they tend to close in the "jaws of death". Terrific company. ChatGPT sounds interesting. We're in a valuation rediscovery. Be cautious. Needs to drop 20-30% more before he'd be interested.

Likes it, but you can still buy it cheaper. He's watching and waiting.

Public perception is that the internet revolution passed it by, which is not the case. Has a huge cloud business, growing at exponential rates, which alone will continue to drive earnings. Penetration in the cloud is only at 20%. Possibility that it could be back front and centre of people connecting, and returns for the next 5-20 years could be significant.

Too early to tell if the AI search engine will be accretive. But shares have risen above the 200-day moving average, but is expensive at 9x forward sales (tech is 5.5x). MSFT is one of the few tech stocks he owns. A leader in cloud. Careful adding to this and tech as a whole.

Alphabet was a recent trade, and he just sold it, because this week's Microsoft Bing AI announcement was a game-changer. Because Google owns 97% of internet search and online ads, you don't need to move the needle much on Microsoft to make it a more competitive pricing environment. He was never a big fan of Google anyway and he got it luckily before it hit bottom. He prefers MSFT.

Excellent company with strong long term prospects.
Massive cash flow generating potential.
Second behind Amazon in cloud business.
Will be a good long term hold. 
Strong management team as well.