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Here’s Why You Must Consider Buying Microsoft (MSFT)’s Shares

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Wedgewood Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For calendar 2021, a portfolio net return of +32.1% was recorded by the fund, outperforming the S&P 500 Index that delivered a +28.7% return for the same period, and the +27.6% gain of the Russell 1000 Growth Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wedgewood Partners, in its Q4 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT) and discussed its stance on the firm. Microsoft Corporation is a Redmond, Washington-based multinational technology conglomerate holding company with a $2.2 trillion market capitalization. MSFT delivered a -10.01% return since the beginning of the year, while its 12-month returns are up by 42.32%. The stock closed at $302.65 per share on January 18, 2022.

Here is what Wedgewood Partners has to say about Microsoft Corporation in its Q4 2021 investor letter:

"Microsoft continues to compound revenue and earnings at a solid clip. Revenue grew +20% on a currency-neutral basis, with operating earnings growing by +27%. Microsoft’s operating earnings are up almost +60% over the past two years as its cloud-based productivity solutions and infrastructure as a service (Azure) benefit from higher pricing and increasing scale, respectively. The Company is also amassing impressive scale for its video game content franchise, which partially figured into our decision to exit Electronic Arts. Microsoft exhibits multiple avenues for strong multiyear growth and remains a core holding in portfolios."

Pixabay/Public Domain

Our calculations show that Microsoft Corporation (NASDAQ: MSFT) ranks 1st on our list of the 30 Most Popular Stocks Among Hedge Funds. MSFT was in 250 hedge fund portfolios at the end of the third quarter of 2021, compared to 238 funds in the previous quarter. Microsoft Corporation (NASDAQ: MSFT) delivered a -1.51% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on MSFT in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.