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Earlier I mentioned that Microsoft’s stock is beginning to look like a good buy. Now there are two articles backing me up. Barron’s says that even after Microsoft's humongo dividend, the company still has $49 billion in the bank. That means that their bank account is more valuable than all but a few companies in the world. (Barron’s is a subscription link, but here’s a link to wire story about the article.)

Business Week says that Microsoft’s period of slow growth may be coming to an end. The company has its new version of Windows (Vista) coming soon. The software giant expects sales to grow by 10% to 12% this fiscal year, compared with just 8% for the fiscal year that just ended.

My take is that Microsoft has entered a new era. It will be more of a stable growth stock, similar to what Coke and Gillette were 20 years ago. Microsoft won't give you big gains, but it will be a dependable part of your portfolio.

Posted by edelfenbein at August 1, 2005 7:45 AM