Just consider what CEO Satya Nadella has pulled off at Microsoft thus far. The company has successfully carved out a position in the cloud, which is no small order considering Amazon's (AMZN) growing dominance in the space. It's making products that are no longer jokes -- the Surface tablet continues to get good reviews and the next Xbox should be a nice hit. Meanwhile, Nadella has gained the confidence of Wall Street in a way that predecessor Steve Ballmer never really did, in large part because he is proving that Microsoft is no longer just a PC player.
As a result, shares of Microsoft have surged about 90% since Nadella took over as CEO in early 2014. The Nasdaq Composite is up roughly 51% during that same span. Despite the advance, Microsoft's forward price-to-earnings multiple is only 20x, noticeably below Amazon and Action Alerts PLUS charity portfolio holding Alphabet (GOOGL) .
To be fair, Buffett has said in the past that his close relationship with Microsoft founder and board member Bill Gates means buying Microsoft shares is off limits. Buffett doesn't want any suggestions that he is getting fed inside information by Gates, which is noble. Still, the differences in the stories between IBM and Microsoft (add Amazon in there, too, which Buffett concedes is a brilliant company) right now are striking, and it's odd that Buffett didn't pick up on that until recently.
Hey, no one is perfect.
Read This Or Lose Out
Your Trump healthcare timeline: Obamacare is incredibly difficult to understand. Don't expect Trumpcare to be any different. Here is a helpful timeline of possible changes under Trump's plan outlined by Goldman Sachs. It's likely this chart will be outdated before we know it.
Trumpcare timeline from GS pic.twitter.com/4ggGgmWoAy— zerohedge (@zerohedge) May 7, 2017
Sad news for you, ex-hippies: Volkswagen (VLKAY) could reportedly discontinue the iconic Beetle as part of a broader effort to stop making cars that aren't selling well, reports Motor Trend. The hardtop Beetle is likely to get the axe, while the convertible version will continue to be sold in Europe.
At least the VW hippie bus will live on soon (see concept ID below).
Volkswagen ID Buzz Concept 2017: a Kombi do Futuro! Uma nova era dá mobilidade elétrica começou com esse conceito, diz a Volks. Revelada no Salão de Detroit, a I.D. Buzz é a Kombi do futuro, elétrica e com sistemas de direção autônoma. Baseada na plataforma Modular Electric Drive Kit (MEB), tem tração integral e um output de 269 cavalos e autonomia de 600 km, graças a bateria de 111 kWh que fica no assoalho. São dois motores elétricos, um em cada eixo. O nome I.D. Buzz vem da seguinte composição: I.D. refere-se aos conceitos "Identity," "Idea," "Individual," "Intelligent" e "Iconic Design". Já o 'BUZZ' é uma palavra que lembra os fonemas de 'bus' e ao barulho 'buzzing' de sistema elétricos. #CarroEsporteClube #volkswagen #idbuzz #kombi #naias2017 #detroitautoshow
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Watch one of the most expensive cars ever being built: Powered by an 8.0-liter W16 engine fed by four turbochargers, the 2018 Chiron produces 1,500 horsepower. The car it's replacing the Bugatti Veyron, which only makes 1,200 hoursepower. Tough life.
National Geographic just dropped the below documentary on how the Chiron is built. Be sure to watch it on your lunch break today.
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European earnings season tracking as the strongest quarter in over a decade, says Morgan Stanley. Earnings on course to grow 23% yoy pic.twitter.com/gLqgAVNKX5— Chris Whittall (@Chris_Whittall) May 8, 2017
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Billy Ray Cyrus now looks like at any moment he can do close-up magic. pic.twitter.com/crMKzyZI6d— Jensen Karp (@JensenClan88) April 30, 2017