
NYSE:ORCL
Thinks this is doing the Microsoft Playbook, which is growing quickly in the Cloud, and getting more licenses and revenues and annuities instead of selling a one-time package. Thinks the turning point for this company is here. Generating a lot of free cash. Very reasonably valued. Dividend yield of 1.51%.
Sold his holdings a few years ago because of slowing revenue growth. They were maintaining their earnings growth, but revenues were starting to slow. When looking at companies, EPS and Price to Earnings Ratios is what everybody wants to look at, but they can be deceiving. This is a good example where a company can grow its earnings by cutting expenses. Revenues are really the fuel of earnings.
This has done wonderfully over the years. It spiked higher around a decade ago. It has room to recover. The leadership has been very steady for years. We are at a shorter term pause where they are building out in the cloud. It is a great core holding.