How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 480.57

+0.4%

12:34 PM EST

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To: Al Bearse who wrote (3)	5/24/1996 11:36:00 AM
From: olduser	of 74651

Al: I bought MSFT on opening day. $1,500 investment in my IRA ballooned to $100000. Subsequently in 1987 I bought more at $7.00 (adjusted for splits). That position allowed me to retire for two years in Colorado for a "luxury" ski bum break. Over the past few years I sold off chunks of my position when I thought MSFT was getting too high and to do things like purchase a vacation home and land. Each time I've sold I've severely regretted it. If I had kept all of my original positions I'd never have to work again. Don't trade MSFT. Stay in it for the long run. Lock up the position and throw away the key. As other postings have indicated NT and SQL Server will be growth engines for years. Like others here I do think MSFT is ahead of itself now. Given it's historical PE of 25 or so it should be trading at around $80 and I expect when the markets blow off the bubble MSFT will take a hit. But, it tends to do this from time to time as the P/E ratio people are willing to bear swings wildly. Be aware also that MSFT can fluctuate by double digit percentages throughout the year. However, over long periods, the trend continues to be up up up. Given that the company is so large inevitably there will be some slowdown in this growth rate. Remember also, as Warren Buffet often points out, if you sell now you're going to pay the government 28% of your gain. If you don't sell, that 28% continues to work for you tax free. Don't hold me responsible for this advice! But, having kicked myself repeatedly for selling chunks of MSFT I can tell you it hurts, hurts, hurts to bet against Bill Gates and MSFT by selling. Greg Craig

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