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Saturday, June 7, 2014

Next Apple?

Long time readers know that I love Microsoft (MSFT) and actually it is one of the largest positions I have in my portfolio. Not only I have it as my long-term retirement investment, I’m also repeatedly extracting quite good short-term income from it by selling call or put options from time to time. Microsoft is very royal to me to “send” me a lot of free money in the past year or so. As I have said before, for such kind of long-term dividend reinvestment, your goal is not to have much capital gain but rather to accumulate as many shares as possible. That will be a more efficient way to make you rich. As much as I’d like that MSFT will stay where it is now or even lower, I’m afraid it may start to transform to a more actively growing stock. I just saw a video about a new product it is working on: Skype Verbal Translator. It is very impressive and I think it may become a revolutionary product with a huge market, something similar to what Apple was doing when it was transforming itself. Think about it: how much would you wish that you could go anywhere in the world without any language problem? I’m pretty sure this will be a product everyone loves. Of course, this product is still premature for commercialization at the moment. My son can speak 6 languages including German. He viewed this video and told me that the translation from German to English is quite good but English to German is only about 40% accurate grammatically, although the content is definitely understandable. But I’m confident Microsoft will overcome the hurdles and eventually market this amazing product successfully. When it does, watch its stock price! Keep in mind, this is likely just one of the innovative products Microsoft is working on under the new CEO.  If I were you, I would start to accumulate its shares now to enjoy its very reliable and increasing dividends while waiting also for the days when its share price also skyrockets. It is not if but when. I'm even betting Microsoft may become another Apple: a stock used to be something no one was interested in but suddenly one day it became everyone's darling! I love Microsoft!!!

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