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It's a very short list of stocks that have been good investments for the past 10 years, and still remain so today.
Among that list of powerful names on that list is Microsoft stock.
Microsoft stock started trading on March 13, 1986. Since then, the stock has generally gained value. There's been a few dips here and there, but for investors, MSFT stock is an overall winner that's been a great investment for the long term.
Microsoft stock has paralleled the success of Microsoft the company. On the success of Microsoft, co-founder Bill Gates has become the second-richest person in the world. His worth is estimated to be $96 billion. Gates remained the CEO of Microsoft until 2000 when he stepped down to focus on philanthropy.
Microsoft Stock Price History
What if you had been one of those early investors in Microsoft stock? Well, you'd likely be pretty wealthy today.
Let's do the math.
On March 13, 1986 when MSFT stock debuted during its initial public offering (IPO), the opening price was $21 per share. But, the price quickly shot higher once it started trading.
Because the Microsoft stock was so strongly sought after, the first trade was at $25.50. Even in 1986, investors knew the Microsoft stock was a good investment.
So, if you had invested $1000 in MSFT stock in 1986, what would it be worth today? It would be worth a whopping $1.6 million. That number includes price appreciation and dividends.
One interesting fact about Microsoft's IPO is that it wasn't necessarily what the company wanted. Microsoft waited 11 years before their IPO and were generally successful during that time. They even enticed top talent and employees to the company through offers of stock options. But, it was estimated that by 1987, the company would have to register with SEC. So, they decided upon an IPO instead.
On that first day, Microsoft sold 3 million shares. You can imagine that the Microsoft stock price shot up, even on that first day. With a 45% stake in Microsoft, Gates quickly became a multimillionaire. At 39, Gates received the title of world's richest man with $12.9 billion. He held that title for many years.
Microsoft Stock Price Today
Most investors, even those new to the game, know that Microsoft stock is a good investment. The company and stock have been around a long time and have been consistently successful.
However, technology stocks have been struggling. Big names that generally have high-growth aren't having the kind of returns they're looking for. Between October and November 2018, the Nasdaq Composite actually dropped more than 9%. Still, Microsoft's growth prospects appear that they will outperform Nvidia, Facebook, and Apple among others.
Economic slowdown or not, analysts believe that Microsoft stock will be able to weather the storm comfortably. Both top and bottom line growth will help Microsoft stock to continue to outperform.
And, as successful as Microsoft stock has been over time, it has also faced plenty of setbacks. The late 90s brought antitrust charges, the 2000s brought a series of unpopular products.
But, CEO Satya Nadella turned things around with a focus on cloud computing when he took over in 2014. Microsoft continued its successes by acquiring LinkedIn and GitHub in 2016 and 2018 respectively.
Since Nadella took over 2014, the Microsoft stock price has nearly tripled. Microsoft stands as one of the most powerful companies in the tech industry. Not to mention that it has a market cap that rivals Amazon and Google.
Microsoft Stock's Future
With their continued growth, successful acquisitions, and top and bottom line growth potential, Microsoft stock will continue to be in demand with investors in the future.
If you're interested in investing in technology companies, MSFT stock is the perfect option. If you're looking to create a diversified portfolio, you should also looking apple stock.