What are the best performing stocks over the past 10 years as far as large caps go? Microsoft Corporation (NASDAQ:MSFT) never ceases to provide more reasons to own the stock despite market turmoil.
Growth
Microsoft is a growth machine. The company has simply blown expectations out of water with respect to the company’s cloud computing business and peer networking/work from home technologies which have soared in usage as a result of this pandemic. I would expect those trends to continue indefinitely, so Microsoft receives an A+ on this metric.
Fundamentals
Despite a relatively high valuation, Microsoft stock doesn’t look outlandishly expensive when one considers the incredible fundamental supporting said valuation. A Return On Equity (ROE) of more than 40%, for example, is obscene and represents the amazing quality of the company’s assets and its management team .
Great balance sheet
Microsoft has built its business into a cash flow machine, turning out incredible amounts of cash each and every quarter. This provides a backdrop for an extremely good balance sheet, relatively low amounts of debt, and room for continued dividend increases and share buybacks over the long term.
Invest wisely, my friends.