There is almost no business in the world that is as great as Microsoft. If presented with a scenario where I could make ten investments at fair value to hold for a lifetime, Microsoft would be one of the slots. Its software products for individuals and businesses as well as cloud data storage segments has given it 30% profit margins on business lines that grow increasingly entrenched over time while achieving double-digit sales growth.
In addition, it has one of the strongest balance sheets in the world with a net cash surplus of almost $70 billion. Monster repurchases, one-time dividends, or large acquisitions certainly await its future. The R&D budget is one of the five largest in the world, and internal product growth is almost certain to contribute new products meaningfully over time. It is exactly the kind of business you would love to own over the next couple decades. … Read the rest of this article!