We recently published a list of Ken Fisher Stock Portfolio: Top 10 Stock Picks. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other stock picks from Ken Fisher’s portfolio.
Ken Fisher is an American billionaire investment analyst and founder of Fisher Investments, a renowned money management firm in the financial world with over 170,000 clients globally and assets of $299 billion as of the end of 2024.
READ ALSO: 12 Best Long-Term Stocks to Buy According to Ken Fisher and Billionaire Ken Fisher’s Top 10 High Growth Stock Picks.
Ken Fisher’s Investment Philosophy and Strategies
He founded Fisher Investments in 1979 and managed to grow it to big proportions through aggressive advertisements. It is one of the most advertised investment advisors in the country, with the company reaching out directly to clients and prospects to promote its products.
Another factor that has significantly contributed to the firm’s growth is that it targets high net worth individuals for investments. The company also has a positive reputation in the market for retaining portfolio management talent, which is evident from its low turnover compared to other companies in the industry, and has helped the firm have a continuity of policies and strategies.
The firm’s investment philosophy is based on Fisher’s fundamental belief in capitalism and free markets, where demand and supply determine the prices of securities. It also has a firm reliance on market research and metrics such as price-to-sales ratio to find undervalued growth stocks.
Fisher stepped down as CEO in 2016, but still has an active role to play in the firm as its Executive Chairman and Co-Chief Investment Officer. Moreover, his influence on financial markets extends well beyond asset management as he is an author of 11 books, four of which became best-sellers. The billionaire has also published many papers and is a columnist for several notable newspapers and magazines.
Recent Developments
In January this year, Fisher Investments announced that Advent International, a wholly owned subsidiary of the Abu Dhabi Investment Authority, had completed a $3 billion minority stock investment in the firm. The transaction values Fisher Investments at $12.75 billion. The strategic partnership is part of Ken Fisher’s long-term estate planning, and will ensure that the firm maintains its private independence and commitment to exceptional client service.
While Trump’s tariffs have sent shockwaves through the markets, Fisher Investments is confident about the long-term outlook. Here is what the firm stated on its weekly website series, This Week in Review:
“While more downside is possible, we think the biggest risk for investors is making any knee jerk decisions amid fast moving tariff news. Market volatility can feel unsettling. However, selling stocks during a downturn can lead to missing out on gains if the market rebounds, which we believe will happen this year.”
Methodology
We scanned Fisher Asset Management’s 13F portfolio, as of December 31, 2024. From there, we picked the top 10 stocks according to their stake value and ranked them in ascending order. ETFs have been excluded from our list.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT)
Stake Value as of Q4 2024: $11,898,314,040
Microsoft Corporation (NASDAQ:MSFT) is an American technology company, best known for its operating systems and software products. It is among the top picks from the Ken Fisher stock portfolio.
The Intelligent Cloud segment has become a major driver of growth for Microsoft Corporation (NASDAQ:MSFT). The segment’s revenue increased 19% year-over-year during the second quarter of fiscal 2025 and contributed 37% of the company’s overall revenue of $69.6 billion, led by a strong show from Azure and other cloud services.
Microsoft Corporation (NASDAQ:MSFT)’s Productivity and Business Processes segment also delivered an impressive 14% growth in revenue to reach $29.4 billion. M365 Commercial cloud revenue was up 16%, while M365 Consumer cloud revenue grew 8%. LinkedIn revenue also increased 9% during the quarter.
Microsoft Corporation (NASDAQ:MSFT) returned $9.7 billion to shareholders through dividends and share repurchases in Q2, reflecting its commitment to shareholder returns. Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 33.8%.
According to Insider Monkey’s database for Q4 2024, 317 hedge funds held a stake in Microsoft Corporation (NASDAQ:MSFT), improving from 279 at the end of the third quarter.
Overall, MSFT ranks 3rd on our list of stock picks from Ken Fisher’s portfolio. While we acknowledge the potential of technology companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
