Learn the Power of Value Investing

Introduction:

If someone had bought into Microsoft’s IPO in 1986 and remained invested through the years, it would have showcased the remarkable power of long-term investment strategies and the importance of making intelligent stock choices. The growth and success of Microsoft over the years highlight the potential rewards that patient investors can reap when they stay committed to their investments and make well-informed decisions.

Let’s take a closer look at the numbers and consider the current prospects of Microsoft as an investment.

The IPO Investment:

A $1,000 investment in Microsoft’s IPO would have provided you with 47 shares at $21 per share.

Accounting for the nine subsequent stock splits, your original investment would have transformed into 13,536 shares, with a cost basis of $0.0729 per share.

Astonishing Returns:

With Microsoft’s stock price at $238.73 per share (in Dec 2022), the total value of your investment would be an astounding $3.23 million.

This reflects an exceptional return of 327,401% over the years.

Dividends:

Since 2003, Microsoft has paid dividends, and assuming you held all your shares, you would have received $341,513 in dividend payments.

Currently, with a quarterly dividend of $0.68 per share, your annual dividend income would amount to $36,817, 36 times your initial investment.

Microsoft’s Investment Potential:

Despite a 28% decline in 2022 due to market conditions, Microsoft remains a promising investment opportunity.

Operating across diverse and transformative industries, serving consumers and businesses alike, Microsoft is positioned for long-term growth and innovation.

Intelligent Stock Choices and Market Opportunities:

Microsoft’s diverse business ventures and transformative industries have made it a strong contender in the market.

Investors who recognize the company’s potential for growth and innovation have made intelligent stock choices, reaping significant rewards over time.

Conclusion:

The idea of having invested in Microsoft’s IPO exemplifies the power of long-term investment strategies and the importance of making informed stock choices. The remarkable returns and dividend income achieved through this investment journey demonstrate the potential rewards that patient investors can enjoy when they stay committed to their investments and make intelligent decisions. Microsoft’s ongoing success and market opportunities further solidify its position as an attractive option for those seeking long-term growth and financial stability.