5 Best Stocks to Buy According to Billionaire Ken Fisher

2. Microsoft Corporation (NASDAQ: MSFT)

Number of Hedge Fund Holders: 238

The technology giant Microsoft is among the most favorite stock picks of billionaire Ken Fisher. His hedge fund has been holding a position in MSFT over the last two decades. At the end of the second quarter, Fisher Asset Management held 24.8 million shares of Microsoft worth around $6.7 billion. Microsoft’s sustainable dividend growth along with steady share price appreciation makes it one of the best stocks to hold for the long term.

Alger, an investment management firm, highlighted a few stocks including Microsoft in the second quarter investor letter. Here is what Alger stated: 

“Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Recently, Microsoft reported that Azure grew 50% during the past quarter.

This high-unit volume growth is a primary driver of the company’s higher share price, but Microsoft’s strong operating execution has enabled notable margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases. Microsoft’s chief executive officer, furthermore, reiterated his comment from a few months back, when he said he expects technology spending as a percent of GDP to jump from about 5% today to 10% in a few years and that Microsoft is well-positioned to capture market share.”