Welcome to the fifth episode of Sunday with eDGI – Why I bought Microsoft stock after their fiscal 2021 3rd quarter earnings.
This week’s show is all about the big tech stocks and especially the FAAMG members. Their earnings were suburb and this was probably one of the most epic earnings weeks I have ever experienced during my investing life.
I’ll show you briefly what I found so impressive in it, but soon after it I’m going to talk extensively about Microsoft.
I’ll explain a bit more about what Moat is and the Microsoft moat in particularly. After that I’m sharing my thoughts about Satya Nadella, one of the greatest CEO’s of our era.
But the real meat in this video is my Microsoft stock analysis in which I will break down the company for you by looking into their earnings, cash flows, shareholder returns and dividend safety. By the end of the video I’ll show you my fair value estimates by using the discounted cash flow methodology and the EV / EBITDA valuation technique.
I hope you enjoy this video and don’t forget to spread the word. It means the world to me 🙏
PS: this is an update from my earlier Microsoft stock analysis last year.
- 0:00 – Intro
- 1:18 – $FB $AAPL $AMZN $MSFT $GOOG $GOOGL earnings results
- 6:14 – My criteria for analyzing a company
- 7:26 – Definition of a company MOAT
- 8:45 – Catalysts and secular growth trends driving Microsoft’s growth
- 10:57 – Moat Microsoft
- 14:28 – Why Satya Nadella is one of the greatest CEO’s out there
- 17:40 – Microsoft’s acquisitions
- 19:29 – Microsoft earnings growth
- 21:58 – Free Cash flow growth
- 22:53 – Microsoft Shareholder Returns – Dividends and Buybacks
- 25:40 – Dividend Safety
- 25:34 – Microsoft Discounted Cash Flow analysis
- 30:15 – Microsoft Enterprise Value / EBITDA valuation
- 34:20 – My Share purchases for the kids portfolio
- 34:50 – How much time it takes to get to a 10% yield on cost
- 35:52 – Closure
European Dividend Growth Investor