What Is A Commodity Market And Why Invest In It?
The commodity market is an alternative to the stock market. This blog will help you understand how the commodity market works, what type of commodities are traded, and the benefits & risks.
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When you think of a PC, you think of Microsoft. Such is the impact of Windows and MSFT stock whose rise was championed by the keen leadership of ex-Microsoft CEO, Bill Gates.
The growth of the MSFT stock and Bill Gates himself has been synonymous with the digital revolution and the tech takeover of the S&P 500.
Ever since its IPO in 1986, the MSFT stock has been a lucrative buy for investors across the globe. Over the past 30 odd years, MSFT stock value has increased by a whopping 71,000%!
The pandemic did not have an impact on the MSFT stock but it quickly recovered and has been steadily climbing since March 2020. As of 04-01-2021, the MSFT stock is trading well above its pre-COVID value.
So should you invest in MSFT stock from India in 2021? Let’s look at the facts to answer this question. Important tip: Always consult a wealth coach before investing in any asset.
Fun Fact: Back in 1997, Microsoft invested $150 million in Apple to save the company from bankruptcy. When Steve Jobs announced this on stage, the crowd booed.
1. The power of the Windows OS. It’s estimated that there are over 1 billion Windows PCs currently being used.
2. Growing revenue. FY 2021 first-quarter revenue growth of 48% year over year.
3. Diverse income streams. 22% more revenue from server and cloud products.
4. Strategic partnerships with prominent entities like the US Department of Defence and Starlink (a SpaceX project).
5. 21st on the list of Fortune 500 companies in terms of total revenue for 2020.
6. Not under the microscope for antitrust regulations compared to Apple, Google, and others.
7. Secure and reliable. Lower credit default risk compared to the US Federal Government.
Fun Fact: Employees at Microsoft are expected to treat everyone with M&Ms on their work anniversaries. The math? 1 pound of M&Ms per year spent at Microsoft.
1. High P/E ratio given that Microsoft is a trillion-dollar company.
2. Stiff competition in new domains like AI and cloud computing from Amazon and Apple.
3. Certain less than stellar products like Bing.
Microsoft is a reliable company and has a remarkable reputation compared to other tech giants. It also has a stellar credit rating and is considered to be safer than US bonds.
Investors prefer the MSFT stock since its value has been steadily growing since the drop during the pandemic. The MSFT stock has minimal risks associated with it and pays a dividend of 1.05%.
However, whether or not you should invest in MSFT stock from India would depend on your risk appetite, age, goals, current finances, and more. The MSFT stock is, after all, a market-linked instrument.
So speak to a wealth coach before you invest in the MSFT stock. A Cube wealth coach will help you understand whether the MSFT stock or any US stock would work well for you and your investment goals.
The Cube Wealth app is a portfolio management platform that makes it easier for you to invest in US stocks like MSFT, AAPL, TSLA, NFLX, and more from India. Cube is also the first app to bring US advisory to India.
According to the Liberalised Remittance Scheme (LRS), Indian investors can invest up to $250,000 (₹1,82,46,500) in the US markets. However, Cube allows you to invest in US stocks for as little as $1. You can do so using 2 routes:
Cube brings honesty and transparency to an otherwise complicated investment journey. Every detail is laid out in a clear and simple manner so that you can choose to act based on your goals.
Here’s a quick video on how you can buy US stocks on your own using Cube
If you need help, you can reach out to our wealth coaches using the live chat feature on the app. You can even call our wealth coaches or WhatsApp them!
Email us with the tagline “US stocks” or download the Cube Wealth app today to know more about investing in US stocks for as little as $1.
In 2021, Microsoft is more than just an OS product and is now an ever-present in cloud computing, gaming consoles, and more. Here’s a list of the top 10 MSFT products:
1. Microsoft Azure
2. Windows
3. Office Suite
4. Xbox
5. Visual Studio
6. Microsoft GitHub
7. Microsoft Teams
8. Microsoft PowerBI
9. Skype
10. Cortana
*Note: All facts & figures as of 04-01-2021.
More from our US stock blogs series:
1. Tesla stock
3. Amazon stock
5. Google stock
7. Apple stock
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