microsoft (NASDAQ:MSFT) It’s one of my biggest holdings, which has worked well for me. Until the stock price drops almost 10% on January 29, that is. And while that’s not ideal, I’m looking at it from a positive perspective, which gives me the opportunity to shop at a discount. Regardless of Microsoft’s stock performance, it’s a bet I plan to steadily increase and hold for the long term.
The reason I’m excited about Microsoft long-term is because of how diversified its business is and how embedded its products and services are in daily corporate life globally.
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Its productivity tools, such as Excel, Outlook and Teams, are used by countless companies for daily tasks and communications; Many companies rely on Microsoft Azure for their digital infrastructure; and its Windows operating system is the favorite of many companies.
Tech companies that rely on consumer demand are more likely to experience swings in demand with economic changes. Corporate clients are much more likely to maintain their services in difficult economic times. It’s much easier to keep your smartphone a little longer than to have a company cancel your cloud service.
Microsoft’s long-term competitive advantage is its large ecosystem. Unless something drastic happens, I don’t see this changing anytime soon.
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Stefon Walters has positions at Microsoft. The Motley Fool has positions and recommends Microsoft. The Motley Fool has a disclosure policy.
1 Stock I’ll Buy in 2026 and Hold Forever was originally published by The Motley Fool