One of my favorite hedgefund managers talking about why you should buy Microsoft. I believe it's his #3 position behind Pfizer and Apple. I know he recently loaded up on Seagate Technologies too. He's had 21% annualized returns since 1996 and isn't afraid to have over concentrated positions. Read his logic.
I already owned Microsoft and I agree with a lot of what he's saying. Even more obvious than to buy Microsoft is that CEO Ballmer has got to go.
As I've said before I like investing in the horse and not the jockey but with tech companies I think the jockey is much more important. Tech is so dynamic and changing you don't want a buffoon like Ballmer at the helm, it's worth paying extra for a guy like Steve Jobs. The difference between winning and losing is magnified. Companies like JNJ you buy the horse, in tech consider the jockey more. If Ballmer quit tomorrow this stock rallies 15%. If somebody like Einhorn ran it (focusing on winning divisions, cutting unprofitable R&D, using creativity like giving Bing to facebook for a stake in the company etc. then this stock could triple). It might take time but at a 7 PE when you take out the cash the company is worth an investment. You might have to wait it out until Ballmer is gone but they are currently paying about a 2.4% dividend off the stuff he hasn't ruined yet.