Valuation and Other Thoughts

11/10/2020: MSFT is not cheap, but as with a Brioni suit, it is not cheap for a reason. MSFT has transformed itself over the last 3-5 years to be a major player in all the growth sectors in tech. MSFT Azure is a leading player in the cloud and the decision to move MSFT products to a subscription billing process has increased margins. Although Office 365 isn't a major growth driver, it is a cash cow, bringing in tons of cash that MSFT can reinvest in alternative growth initiatives. Despite being an "old" company, MSFT is still growing strong; logging a 12.4% YoY sales growth rate in its most recent quarter.

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