3 ms·
>Microsoft shareholders would probably be better off if MS stopped exploring, exploited current revenue streams, and allowed shareholders to invest in businesse
by lukeschlather 15y ago
>Microsoft shareholders would probably be better off if MS stopped exploring, exploited current revenue streams, and allowed shareholders to invest in businesses with a brighter future.
That's your judgment. I have to honestly say I'm thankful you're not in charge of Microsoft, because someone trying to compete with Google in the search space is a great thing. (And with Google doing a lot to make Microsoft's core markets vanish, getting into search could save Microsoft's existence in a 10-year timeframe.)
- yummyfajitas 15y agoThe two scenarios, supposing that MS's current product line is dead in 10 years, and pretending share prices cost $1 right now): Own MS now. $10 investment yields $20 in profits, all invested in Bing. Net result, in 10 years, you have 20 shares of Bing. Own MS now. $10 investment yields $20 cash in your hands. You buy google. Net result, in 10 years, you own 20 shares of Google. Unless you think Bing is a better investment than Google, you are better off taking the cash and reinvesting in Google. And as an investor, I don't care if MS exists in 10 years. I care whether my portfolio is up or down in 10 years. And I care about liquidity - all else held equal, I'd rather have $1 cash in my hands than $1 cash in MS's hands with me owning shares. If I can invest $10 into MS, take $20 cash out, and have the company die, that's not a bad thing.