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Investor Calls Microsoft His 'Forever Stock' - Here's Why
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Published in Stocks and Investing on Monday, December 29th 2025 at 13:44 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
The One Stock This Investor Will Hold "For Dear Life": Why Microsoft Remains a Cornerstone Portfolio Pick
In a recent Fool.com article published December 29, 2024, investor Jason Hall makes a compelling case for holding Microsoft (MSFT) as a core, long-term investment – so much so that he describes it as the "one forever stock" he'll hold “for dear life.” The piece isn’t just about Microsoft’s current success; it delves into the company’s historical resilience, its strategic positioning for future growth, and why Hall believes it possesses a unique combination of factors making it exceptionally durable.
Hall begins by acknowledging that picking the forever stock is inherently subjective. He emphasizes that no investment is guaranteed, and market conditions can always shift unexpectedly. However, after years of analyzing companies, he’s consistently returned to Microsoft as the most likely candidate for enduring success. The article isn't a call to action to buy immediately; rather, it's an explanation of why Hall has such strong conviction in his existing holding.
A History of Adaptation and Reinvention:
The foundation of Hall’s argument lies in Microsoft’s remarkable ability to adapt and reinvent itself throughout its history. He points out that the company faced significant challenges multiple times, including the rise of open-source software, the mobile revolution (where it arguably missed a crucial opportunity), and the shift towards cloud computing. Yet, each time, Microsoft demonstrated an impressive capacity for change.
The article highlights how Microsoft transitioned from primarily selling boxed software to dominating the enterprise market with Windows Server and Office 365. This transition wasn't seamless; there were missteps along the way. However, the company’s willingness to acknowledge its shortcomings and pivot is a key characteristic Hall admires. He references earlier articles on The Motley Fool highlighting Microsoft's past struggles (linked within the original article), demonstrating that even seemingly invincible companies face periods of difficulty.
The Cloud Powerhouse: Azure's Dominance:
A significant portion of Hall’s argument centers around Microsoft’s cloud computing business, Azure. He emphasizes that Azure is not just a competitor to Amazon Web Services (AWS); it's rapidly becoming a leader in its own right. The article notes that Azure has consistently shown strong growth rates, often outpacing AWS in certain segments and regions. This isn't simply about revenue; it’s about the strategic importance of cloud infrastructure for businesses across all industries. As companies increasingly rely on digital transformation and data-driven decision making, the demand for robust and scalable cloud solutions will only continue to grow.
Hall points out that Azure benefits from Microsoft’s existing relationships with enterprise clients – a massive advantage over newer entrants. The integration of Azure with other Microsoft products like Office 365 and Dynamics 365 creates a sticky ecosystem that makes it difficult for customers to switch providers. This "bundling" strategy, a hallmark of Microsoft's approach, reinforces its position in the market.
Beyond Cloud: AI and Other Growth Drivers:
While Azure is central to Hall’s thesis, he also acknowledges other growth drivers within Microsoft. The company’s investments in artificial intelligence (AI) are particularly noteworthy. Microsoft has strategically integrated AI capabilities into its existing products, enhancing their functionality and appeal. The partnership with OpenAI, the creator of ChatGPT, exemplifies this commitment. Hall believes that AI will be a transformative force across industries, and Microsoft is well-positioned to capitalize on this trend.
Furthermore, Hall mentions Microsoft’s gaming division, Xbox, as a consistent performer. The subscription service Xbox Game Pass continues to attract subscribers, generating recurring revenue and expanding the company's reach within the entertainment sector. The acquisition of Activision Blizzard (mentioned in the original article) further strengthens its position in the gaming market, although Hall acknowledges potential regulatory hurdles remain.
Valuation and Risk Considerations:
Hall doesn’t ignore valuation concerns. Microsoft is a large and mature company, and its stock price reflects that. However, he argues that the company's growth prospects justify the premium. He believes that the long-term potential of Azure, AI, and other strategic initiatives will continue to drive value creation for shareholders.
The article briefly touches on risks, including increased competition in the cloud market, regulatory scrutiny (particularly regarding its dominance), and potential economic downturns. However, Hall’s overall conviction remains strong, suggesting that he believes Microsoft's strengths outweigh these risks. He emphasizes that even a company as robust as Microsoft isn't immune to challenges, but its ability to adapt makes it better equipped to weather them than many of its peers.
The "Forever Stock" Mindset:
Ultimately, Hall’s argument for holding Microsoft “for dear life” is rooted in his belief that the company possesses a rare combination of factors: a proven track record of adaptation, a dominant position in a high-growth market (cloud computing), strategic investments in emerging technologies (AI), and a strong financial foundation. He isn't advocating for blind faith; he’s expressing confidence based on careful analysis and a long-term perspective. The "forever stock" concept represents a commitment to holding quality companies through thick and thin, recognizing that market volatility is inevitable but the underlying fundamentals of a great business will ultimately prevail.
Disclaimer: This article summarizes information from an external source and does not constitute financial advice. Always conduct your own research before making investment decisions.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/12/29/1-forever-stock-ill-hold-for-dear-life/ ]
