So more than a respectable decade of work. I'm not a huge fan of Microsoft but its business performance is sometimes ignored because the stock has not performed.
For a short time period in the year 2000, Microsoft had an enterprise value (market cap - net cash on the balance sheet) of over $ 600 billion. Just over a decade ago an investor was paying more than $ 600 billion in enterprise value for $ 7 billion of demonstrated earning power. Today, an investor is paying a bit over $ 200 billion in enterprise value for more than $ 20 billion in earning power.
Also, consider that there is now 20% less shares outstanding compared to a decade ago. So the stock didn't do well because it entered this past decade overvalued.
The business did just fine.
Adam
Small long position in MSFT
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