My encounter with Microsoft happened when I was 5 years old.
Since my dad was involved in IT, our family had a personal computer in the early days of the Internet.
I remember using the Windows 95 operating system, yet I didn’t have many demands for it: I just played Solitaire, Minesweeper and used Notepad to learn how to type. I even had to use a dictionary to understand the English words since it’s not my native language.
Then, I started using the Microsoft Office products: Microsoft Word, Excel, and PowerPoint for my school and university projects. There are even memes that the financial sector, for example, is holding on Excel.
Fast forward to today, Microsoft has become a transnational technology corporation with a globally recognized household brand. Over the years, the company expanded into other segments and made several other acquisitions, including LinkedIn, Skype, and GitHub.
Just like Microsoft was at the forefront of operating systems three decades ago (and still is), today it’s at the forefront of AI development. Its most notable investment of $13B in OpenAI – the creator of ChatGPT – makes it a 49% owner of the venture.
Yet, it’s not all sunshine and roses for the corporation. Increased competition by established and emerging companies, legal scrutiny by regulators worldwide, and reliance on its software business pose risks for Microsoft.
However, the fact that the company has been persevering over the last decades instils confidence in its prospects.
If you had invested $1,000 at the time of IPO in 1986 at 10 cents per share, you would have $4,181,600 sitting in your trading account today. That’s an annualized return of 24.54%, or a whopping 418,060% return!
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