How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 487.10

-0.1%

Dec 29 3:59 PM EST

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To: David Howe who wrote (61940)	10/22/2001 3:48:34 PM
From: sea_biscuit	Read Replies (1) of 74651

At the start of 1999, I had a bet with a few friends of mine -- that MSFT will underperform the S&P 500 over the next 10 years. So far, MSFT has been down about 15% since then (adjusted for all splits) and SPY is down about 9%. Even if MSFT dominates the business, I think it will continue to underperform the index. It is mainly because of high valuations. Current high valuations almost always imply poor long-term returns. Is this a tradable stock? Of course it is. But will this be a good long-term investment (meaning that it will beat the indexes)? Probably not.

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