3 ms·

> what's changed Passive cash flows became more expensive. Money got pushed into Microsoft, not pulled into it.

• enilakla 6y ago
  Exactly
• rsp1984 6y ago
  Mind explaining what you mean by "passive cash flows" and why they became more expensive?
  • Spivak 6y ago
    MS didn’t become more valuable in a vacuum. It’s just with the pandemic hurting so many businesses the value of a stable mature company that’s still making money went up.
    • take_a_breath 6y ago
      The price/earnings ratio went up. You are paying more for each dollar of MS profit compared to last year (which was already a high P/E ratio). It’s another form of inflation.
  • misja111 6y ago
    Passive cash is cash that is invested relatively risk free, such as in A status government bonds. 10Y treasury rate dropped by 1 percent point this year: https://ycharts.com/indicators/10_year_treasury_rate https://ycharts.com/indicators/10_year_treasury_rate