Microsoft Stock - Great Buy But Overpriced
Microsoft stock is an excellent value investment with longterm continuous increases in revenue & profits. It's just a bit pricey at these levels.
Microsoft is one of the quintessential value investments. Revenues continuously increase and profits follow suit. But, the current price of Microsoft stock - MSFT - is a bit on the rich side. When you weigh the other alternative investments, downside risks are higher than upside potential. A value investor would want to maximize their opportunity with an investment. Balancing upside and downside potential is one of the keys to successful value investing. Given that, at the current price, the future yield on an investment in Microsoft stock - MSFT - is far lower than the benchmark 10 year US Treasury yield. And, the economy could be turning because of a potential slowdown in economic growth, sending the stock market lower. Weighing all of this, MSFT is too high.
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