nmnmike taught me fast money making advantages of smartly trading momentum stocks but if you believe in a world not going to heck in a hand basket then i think diverse holdings of liquid value stocks which have proven track records deserve places in longer term portfolios.
MSFT falls into this category, it pays yearly 3.2% Dividends sporting P/E ratios less than 1/3rd of Oracle. ORCL and MSFT may actually be a pairs trade if structured and managed correctly but i digress. MSFT is worth $30.00 minimum in my opinion and with Dividends paying better than any bank deposit is a no brainer. even with dead vegetable like management at MSFT i still think the company is far more diverse and solid in products than people give it credit for.
honestly i would not make total positions in MSFT more than 5% of portfolio capital, building over time(unless it becomes a momentum stock with increased fund purchases - very doubtful). typically MSFT has a lower stock prices in months of June & July on a yearly basis to add shares but but i would set alerts on watch lists for when purchase is appropriate.
i am using a portion of gains from momentum trading to fund some long term value investing with beliefs true investing is not completely dead and quick hit artist fund manager computers are not the only game in town.
my hope is information like this helps you even if MSFT is not on your own value investing list.
Dumped last of MSFT in after hours tonight. Only thing left are some rolled Options of no real consequence. I must admit MSFT still looks real strong but will not hold when trade appreciation season abounds.
If MSFT is such a value stock why is Gates selling millions and millions of shares, about every other month. One month he sold 20 million shares. The answer isn't because he wants to diversify, because he has been doing this for years. He should already be diversified. About 3 or 4 years ago a widow wanted my opinion about putting a portion of her wealth into MSFT stock. My comment to her then was, why would you want to buy a stock where the #1 guy is continually selling tons of it. The stock was around $27/sh then. It was good advice then and it continues to be good advice.