Pro Perspectives 1/26/21

January 26, 2021

Microsoft reported earnings after the close today. 

For the eighth consecutive quarter, they beat on earnings and revenues. 

It wasn't too long ago that MSFT was a tech giant that was believed to be past its prime.  If you bought the stock at the top in 1999, you were underwater for 16 years.  If you bought it in 2000 for half price, it was dead money for 13 years (flat line).  In April of 2013, Business Insider wrote a story titled:  "Microsoft Could Be Obsolete By 2017." 

So what changed? 

The same month Business Insider wrote that article, a guy named Jeff Ubben took a $2 billion stake in Microsoft. 

By September Ubben had secured a board seat, and he went to work, pushing for stock buybacks and a new strategy.  He pushed out the CEO, Steve Balmer.  He replaced him with Satya Nadella, who was running the Miscrosoft cloud business.  Nadella's job was to turn Microsoft into a cloud computing company.  He has done it.  

Here's what has happened to the stock …

The stock has now gone up more than 8-fold in seven years.  Today, instead of obsolescence, it's a $1.85 trillion-dollar company, thanks to Ubben.  It's the most extraordinary activist campaign, if not investment and strategic turnaround, of all-time.  

In my Billionaire's Portfolio, we just followed Ubben into his latest high conviction investment this afternoon.  You can join us and get all of the details by subscribing here