Joe, I think one factor is that 1/3 of MSFT stock is tied up by three people, all youngish, who are unlikely to sell significant amounts anytime soon. So there are really only about 1.3B pieces available.
Another reason is me. And people like me. I have shares I bought only 3 years ago, that are worth 5.5 times what I paid. Unfortunately, I own these outside my IRA, so if I sell, I have to pay uncle SAM $20 per share or so. Do I want $80 of MSFT stock or $60 in cash? Since I have a good job, and invest to retire, I'm 'a holding.
Thirdly, ROE. This is the measure of a company's ability to turn money into even more money. MSFT ROE of 37% is almost unbeatable. Of the stocks I follow, only MRK is close. (INTC is 32%, also very good, but somewhat less.)
Finally, with NT and SQL*Server about to burst forth, I don't believe MSFT is close to plateauing. (Just my opinion.)
Regards,
Tom |
