Schwab Network on $MSFT (Oct 30, 2026)

and the fact is that Microsoft is the only one that has talked about positive cash flow. What do you think of a name like Microsoft, which also declined along with the technology sector as a whole by 1.7% today?

Yes, absolutely. We added Microsoft to our investment portfolio in June and July. It emerged on two different fronts. Firstly, within our thesis on artificial intelligence. We differentiate and try to break down AI transactions into different components.

Microsoft has adapted to the idea of shifting its focus from capital expenditure beneficiaries to companies that are likely to lead in the field of artificial intelligence platforms and applications in the future.

This was in fact the result of some strategic shifts they made in April and May. We believe they will be well-positioned on this basis from a strategic point of view as the adoption of artificial intelligence increases.

We see organizations starting to use their platform or continuing to use it, but at a higher and higher rate. In fact, this, along with their excellence in disclosing return on investment, maintaining free cash flow and capital discipline, falls within our framework where we look for higher quality companies capable of increasing dividends over the very long term.

Yes, and I understand Chris Alto’s position in general, you bought Microsoft shares in June and early July.

So, we've thought deeply, and I think Microsoft is a good example of the shift towards platform and application provider trends. We were able to do this after the " Software as a Service" (SaaS) debacle earlier this year, when Microsoft's assessment felt attractive.

When you build your investment portfolio, and you have exchange-traded funds and managed accounts, Microsoft is definitely the large-scale company that has cash on its balance sheet. She doesn't spend recklessly.