Power of Compound Interest!
Did you know $500 contributed yearly compounded at 25% for 27 yrs = over $1 million !

Great Stock Investors.
  • 29% for 37 yrs. - George Soros
  • 21% for 40 yrs. - Warren Buffett
  • 29% for 18 yrs. - Eddie Lampert
  • 29% for 18 yrs. - Peter Lynch
  • 24% for 13 yrs. - Jim Cramer
  • 15% for 20 yrs. - Benjamin Graham
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Sunday, November 09, 2008

MSFT earnings on Tuesday.

It's amazing to me that Microsoft (MSFT) is hovering around $21.00. With zero debt and it's huge cash reserves, and a gigantic buyback plan in the works.....this stock is a no brainer buy even ahead of it's Tuesday earnings call. It's a tech company with p/e of 11 and a forward p/e of 9? The ratios of return on equity and margins have only increased over the years. Check it out.

I'm glad Steve Ballmer has rejected Yahoo and moved on. If you look at Yahoo's financial fundamentals ratios, they are terrible. Although Microsoft has lost the search race against Google, it is still the king of the operating system with a 90% market share. Not to mention it's Office Suite of Word, Powerpoint, etc is used by 400 million users! It generates about $1 billion of free cash flow every month according to Standard & Poors. It's a cash cow toll bridge and won't be going away anytime soon unless an iPhone can replace a laptop or desktop.

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