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Friday, April 22, 2016

Buy Microsoft at dip


For those who have read my blogs for some time, they must know how much I love Microsoft (MSFT) as a long term investment. I have talked about MSFT numerous times, advising buying at its dips whenever it got hit hard due to some short-term hiccups (see here which contains many links). I think we are getting another great opportunity now when MSFT crashed by 8% due to disappointed earnings today. Yes, MSFT seems not really very cheap at this level based on P/E but considering how profitable it is with over $50 Billion cash sitting in its treasury and over 20 years of track records of increasing its dividend by double digits, you won’t be doing badly by holding MSFT for long-term with dividend reinvested. This is a stock that you can sleep well on it by knowing that it will make you rich simply by holding it without doing anything else. See here how you can do that!
 
At today’s level around $51, it is just sitting on its one-year trend line, a good point for entry. If it ever dips below $50, which I don’t expect it will do, it will offer an even much greater entry opportunity. Don’t miss it if you are a long-term investor!!

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