How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 491.12

+1.7%

3:59 PM EST

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To: KeepItSimple who wrote (35553)	12/16/1999 12:10:00 PM
From: Valley Girl	Read Replies (1) of 74651

You've missed the whole point of investing in growth companies. You're looking at the past and present rather than to the future. MSFT and other techs are reinvesting profits in their businesses (and related ones), building shareholder equity. Someday this growth spiral will end, but it's probably a long long way in the future. When it does end, companies can then start returning profits through dividends or stock buy-backs. Dividends are old-fashioned. From a tax standpoint, you're much better off if a company re-invests any profits it has or, if it can't find anything worth doing with the money, buying back shares. That way your money keeps compounding tax-free through the magic of capital gains.

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