Master a checklist-driven strategy for achieving stock marker alpha
In this updated coverage research report, we reexamine Microsoft Corporation MSFT 0.00%↑, an information technology enterprise, to see if it continues to meet QualityValue Investing’s (QVI) Real-Time Stock Picks criteria based on QVI’s proprietary checklist analysis of the business’s current wealth and the share price’s present value.
Microsoft | Current Wealth
Value Proposition
Microsoft is a dividend-paying large-cap stock in the information technology sector’s systems software industry. The stock was added to the QVI Stock Picks on June 28, 2011, at a cost basis of $20.08, adjusted for dividends paid to cash.
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. Its segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The company sells its products through OEMs, distributors, and resellers, as well as directly via digital marketplaces, online, and retail stores. Microsoft was founded in 1975 and is headquartered in Redmond, Washington, USA.
Economic Moat
Morningstar assigns Microsoft a wide economic moat mainly due to switching costs, with network effects and cost advantages as secondary factors. Analysts believe the productivity and business processes (PBP) and intelligent cloud (IC) segments have wide moats, while personal computing merits only a narrow moat. They expect Microsoft’s moat to enable returns exceeding its cost of capital over the next 20 years.
QVI’s Value Proposition Elevator Pitch for Microsoft
Microsoft is the reigning king of productivity software, whether business or personal, cloud or hard drive.
QVI’s value proposition rating for Microsoft: Bullish.
Next, we’ll examine the company’s returns on management, enterprise downside risks, the stock price’s present value, including shareholder yields, valuation multiples, and share price downside risks, and the investment thesis, all exclusive to Quality Value Investing’s premium (paying) subscribers.
Cyber deals on my fourth book, Build Wealth with Common Stocks, have extended through Q1 2025. Invest in a copy today!
“Investing advice is fairly commonplace, but here the author shares his own unique investment wisdom that readers will not find elsewhere.”—Critic's Report, The BookLife Prize (Publishers Weekly)
In addition, it’s goal-setting season and QVI subscribers and new readers can benefit from a unique strategy presented in my second book, The Ten Domains of Effective Goal Setting: Achieve Your Dreams in the Essential Areas of Life, available on Amazon or your favorite online bookstore. Rated a 90-minute read by Kindle.
Unless noted, all data presented is sourced from Charles Schwab & Co., Yahoo Finance, and Microsoft Corp. as of the market close on February 18, 2025, and is intended for illustrative purposes only.
Disclosure: As of the writing of this research report, I/we hold a long and beneficial position in MSFT common shares in our family portfolio. I wrote this report myself, expressing my own opinions. I am not receiving compensation for it other than from subscriptions paid to Substack. I have no business relationship with any company whose stock is mentioned in this post.
Additional Disclosure: Quality Value Investing by David J. Waldron’s primary ticker research reports are for informational purposes only. The accuracy of the data cannot be guaranteed. Narrative and analytics are impersonal, meaning they are not tailored to individual needs nor intended for portfolio construction beyond the QVI Stock Picks, which are presented solely for educational purposes. David is an individual investor and author, not an investment adviser. Readers should always engage in independent research or due diligence and consider consulting a fee-only certified financial planner, a licensed discount broker/dealer, a flat-fee registered investment adviser, a certified public accountant, or a specialized attorney before making any investment, income tax, or estate planning decisions.
Continue reading this post for free, courtesy of David J. Waldron.
