Liking Low-Debt Microsoft

Recent readers of Controlled Greed could easily think that I spend all my time losing my shirt on stocks like General Motors and Japanese consumer lenders.

But it's not so -- I occasionally get things right. ;-)

And, while I may be guilty of getting ahead of myself, I think Microsoft will rank as a portfolio winner in the months to come.

I never thought I'd own Microsoft (MSFT/NASDAQ), but I bought it earlier this year and it has done well. Or perhaps I should say it hasn't fallen like a rock.

John Dorfman reports liking -- and owning -- Microsoft in his latest Bloomberg column, which focuses on technology-related companies. Check it out if the notion appeals to you.

Microsoft has appeared among the holdings of a growing number of value managers in recent months.

Comments

[Mehul]

I think Microsoft will be a good stock to own for the next couple of years. Most of the companies around the world didn't upgrade to Vista. So as soon as Windows 7 comes out, they'll plan to integrate that into the work place, resulting in dramatic rise of revenue for MSFT.

In addition to that, Microsoft Mobile 6.5 (i think), might bring in additional revenue. While the Zune phone is merely a speculation at this point, it might help the numbers too if infact it's launched ( i really doubt it..)

Then, products like Office, & Xbox always do well, and will keep helping the numbers in the next year or so atleast.

So yeah, MSFT stock should see some excellent performance this year and the next one atleast.

[Mehul]

btw, I like yout DirecTV holding as well. I remember speaking to one of their technicians who came to install it @ my home. He was telling how much they are in demand, and how well the company is doing. Looks like they are adding a lot of customers every month etc...and there service is pretty great.

[John]

@Mehul: the market got so low that there were probably a lot of top-notch companies like MSFT around. But I bought that one (can't buy everything!).

Regarding DTV. That stock is still higher than when I bought it, making it and FFH standouts for me. It's also my biggest position (and even bigger considering I own more of it through John Malone's Liberty). Nice to be able to look at a name on my brokerage statement and not cringe. :-)