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