Top 5 Stock Picks of Terry Smith’s Fundsmith LLP

2. Microsoft Corporation (NASDAQ:MSFT)

Fundsmith LLP Stake Value: $3.3 billion

Percentage of Fundsmith LLP’s 13F Portfolio: 9.03%

No. of Hedge Fund Holders: 238

Microsoft Corporation (NASDAQ:MSFT), headquartered in Redmond, Washington, is a prominent developer of software systems and applications for personal computers. The company is second on our list of top 10 stock picks of Terry Smith’s Fundsmith LLP.

Baron Opportunity Fund, an investment management firm, published its Q2 2021 investor letter and mentioned Microsoft Corporation (NASDAQ: MSFT). Here is what Baron Opportunity Fund has to say about the company:

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”