E, You'd be nuts to buy Microsoft at these levels. They're at an all time high, and their p/e is over 60, which is insane!
Of course, this is the same scenario I faced at the end of January last year when I bought msft at a presplit of 102 1/4. I had watched the stock for 9 months, waiting for the dip that never came, when my wife advised me to quit whinning, buy in, and take my lumps. It did retrace briefly for a few points, but as of yesterday I'm up 78% in a little over a year <ggg>.
Just remember, these guys have a monopoly on the operating system that runs 90% of the pc's in the world, and I think they charge the same amount to the box makers regardless of the retail price of their system. It's hard to think they're gonna crash (but I'm sure someone will tell you how they will!).
You can buy in now and take your lumps, or wait for the big correction that may never come and kick yourself later when 92 1/2 looks like a bargain.
imho, Frank |
