Key points from Robert Hagstrom, author of The Warren Buffett Way:

  • Market is discounting zero growth going forward on Microsoft (MSFT).
  • Growth will be slow relative to its past, but it is growing and thus undervalued.
  • Expects good news on new products out of Microsoft this year.
  • Low downside risk on Microsoft, which makes it especially attractive.
  • Fifth largest holding for Microsoft.
  • Doesn’t own any banks, he thinks they are undervalued though and should be trading at book value.
  • His concern with banking sector is growth going forward.

H/T: Canadian Value