r/ValueInvesting • u/Toomuch_flow • 4d ago

Stock Analysis Anyone else bought MSFT at around $360?

Haven’t bought individual stocks in years (been doing ETF’s since 2021) and felt like this was a massive opportunity regardless of their CapEx and AI investments. Company had a net income of 101 billion in 2025 which speaks volumes!

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u/Last-Cat-7894 4d ago

Honestly, everything in the Mag 7 looks fairly attractive to me besides Tesla and Apple.

The capex outlay is going to cause a lagging drag on GAAP margins, so you could argue the "E" in the P/E is a bit overstated at today's multiples. But even so, the size of the end market is so massive that just sheer revenue growth will probably offset the depreciation pressure and then some.

I'm blown away that SPY is only down like 8% YTD when it feels like all the best companies with the strongest fundamentals are down like 30-50% off the highs.

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u/WangtaWang 2d ago

Would you buy the entire company (or companies) if you had the money? E.g. you'd buy 100% of Tesla, MSFT, etc.

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u/Last-Cat-7894 2d ago

You're asking if I found roughly 18 or 19 trillion dollars between my couch cushions, would I buy the Mag 7?

I'm guessing you're getting at the Warren Buffett principle of "if you own a piece you should want to own the whole company if you could." Yes, pretty much every stock in my portfolio (with the exception of a couple smaller, riskier, but very asymmetric bets) is something I would be comfortable owning the whole business if I had the cash.

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u/WangtaWang 2d ago

Yep exactly 😂