The Roman philosopher Seneca wasn’t talking about the stock market when he wrote that “Time discovers truth,” but he could have been. In the long run a stock price will reflect a company’s (true) intrinsic value. In the short run the pricing is basically random. Here are two real-life examples. Let’s say you had the […]
In this article I don’t discuss Apple’s valuation, balance sheet, or financials. I covered these topics in great detail in these articles a few months ago (Part 1: Psychology and Part 2: Value of Ecosystem). Nothing has really changed since, except that Apple announced an enormous share buyback. This article focuses on Apple’s products, innovation, […]
Microsoft needs a new CEO who is an outsider and not entangled in internal politics. It is in desperate need of a Lou Gerstner-like leader
I sang love serenades to Microsoft in the December issue, but a few weeks ago we sold our shares of Microsoft. Because we believe the stock is undervalued, that decision was not easy. What changed? A very important part of my thesis was the success of Windows 8, an operating system that Microsoft made for both PCs and […]
While attending Berkshire Hathaway’s annual meeting, I was interviewed by Matt Nesto of Yahoo! Breakout about Microsoft, EA, Facebook.
I am bored and exhausted. I am on my third cup of coffee, but my lack of excitement has not changed, as I am about to explain why the sleepiest, most boring stock in the universe—Microsoft Corp.—offers a very compelling r eward with very reasonable risk. Microsoft was the bright light in the tech firmament […]