Microsoft Stock is too risky from a worth investing point of view.
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Sven Thank you so much for these videos! Appreciate the hard work!
Glad you like them!
I have a friend who invested a significant share of his portfolio in MSFT in 2016!
great for him!
It really makes me wonder what the expectation is here. That they’ll go to a 10T market cap in a decade? That is 10% of the entire world’s current GDP. Insane.
In terms of economic might (GDP to Market cap) it alone is already as powerful an entity as the entire nation state of France, that’s pretty crazy too.
But it’s a worldwide business. 🤨
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🙂
Please video about Europe inflation vs USA inflation
inflation is global, can fluctuate depending on sentiment on the currenty, but not for me to do a video on 🙁
Hey Sven I’ve been following you for a couple of years now. I just have a question for you since you have a PhD and have seen many economic models. “Is it true that inequality isn’t a parameter?” There is this other YouTuber, Gary Stevenson, who has a hypothesis that since inequality is getting bigger, the wealthiest individuals are just compounding, and with every correction, they just buy more assets, which in his view may lead to an inevitable collapse of the whole financial system.
there are thousands of factors, inequality won’t be a key one – debt, low productivity, aging, climate, health etc. are the key factors.
Hello Sven. How did you get 20 for the pe ratio (Calculation)? Or is it just an assumption?
If the growth stops, then the market will put lower multiple on the stock. For no growth or low growth quality company, the average PE can be 20 which is 5% yield. There is a great video from Sven called the delta of the delta that explains this, you should check it out.
It’s a risk for EVERY growth company with a higher PE. They are fully dependent on growth! If you assume nearly no growth for the next 10 years for MSFT, then better sell now at a higher valuation…
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@@andrejvangelski4514 thank you
just an estimation, PE goes down as soon as the growth stops – check the delta of the delta tool https://www.youtube.com/watch?v=qLFaekkm6F8
@@Value-Investing Thank you
What about Evolution AB? Im curious what you think of it
I see the price is down a bit, could check again!
Good business at bad price = bad investment
correct!
Since you’ve been saying that investing in Microsoft is too risky, we could have easily doubled our money by now. Regards.
yes, but so you can by betting on red in the casino!
My dcf gives me around 230$ per share with the current eps growth.
thanks for sharing!
🗽 MSFT has for me no priority to sell… for me it’s a hold. 🤨
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thanks for sharing!
💼 Microsoft investors might face potential losses over the next five years due to current stock price concerns.
📈 Historically, Microsoft has shown significant growth, though it stagnated for 15 years in the past.
💰 Current market valuation of Microsoft is 12 times its revenues, indicating high expectations.
🏢 Despite strong fundamentals like high gross margins, future returns depend on substantial growth.
🐦 Warren Buffett’s advice on “a bird in the hand” suggests caution in expecting future gains without certainty.
thanks for summarizing!
It’s too hard to enter the market nowadays. The stock equity is going up and up month after month. I just get analysis paralysis every time I look at the chart. I missed out the stock appreciation for the past 6 months, I don’t know what to do anymore if I want to buy stocks at the value price.
it is hard, but we just need to look harder
This year is all bubble again. So many stocks with significantly slowed down revenue growth. Some even are facing decreasing growth. And still, many of these stocks have new highs in stockprice and valuations.
Something must stop this stock ballooning.
But AI has infinite ROIC. You didn’t know??
All tech stocks are too inflated. It’s scary.
When a company starts to build nuclear power plants to run their data centers I think some growth is expected.
ASML would be interesting, thank you for your Videos, i really like the simplicity of explaining.