I've been paying a bit more at

Mortimer Arthur

06-21

I've been paying a bit more attention to $Microsoft(MSFT)$ lately.

One data point really stood out to me.

The last time Microsoft traded around 20x forward earnings, the stock went on to return 200%+ over the next two years.

Does that mean it'll happen again? Of course not.

But Microsoft today is arguably an even stronger business than it was back then.

• Azure continues to benefit from AI demand

• Copilot is becoming part of enterprise workflows

• Cash flow and the balance sheet remain best-in-class

I'm not in a rush to call the bottom, but when one of the highest-quality companies in the market starts looking reasonably valued, I pay attention instead of looking away.

I'm slowly building my watchlist here.

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