Between 2003 through 2013, Microsoft stock traded in the $20s. The company’s stock price performance history is one of the most illustrative examples of how stock price performance and underlying business performance can differ dramatically. Even though the price of the stock did not increase during this ten-year period, the profits per share climbed from $0.97 to $2.65 per share. Profits were tripling while the stock was stagnating, which provided another example that we cannot control the “when” part of stock price movements but should be satisfied that we have performed our task when we have identified and purchased shares in great businesses whose profits are growing.
Since 2013, profits have continued to … Read the rest of this article!