Microsoft (NASDAQ: MSFT) is one of my largest holdings, which has worked out well for me. Until its near 10% stock price drop on Jan. 29, that is. And although that isn’t ideal, I’m looking at it through a positive lens, giving me a chance to go discount shopping. Regardless of how Microsoft’s stock performs, it’s a stake I plan to consistently add to and hold for the long haul.
The reason I’m high on Microsoft long-term is because of how diversified its business is and how ingrained its products and services are in daily corporate life globally.
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Its productivity tools — like Excel, Outlook, and Teams — are used by countless businesses for everyday tasks and communication; many companies rely on Microsoft Azure for their digital infrastructure; and its Windows operating system is the go-to for tons of businesses.
Tech companies that rely on consumer demand are more likely to experience demand swings with economic changes. Corporate clients are much more likely to keep their services through tough economic times. It’s a lot easier to hold on to your smartphone a little longer than it is for a business to cancel its cloud service.
Microsoft’s long-term competitive advantage is its large ecosystem. Short of something drastic happening, I don’t see this changing anytime soon.
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Stefon Walters has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy.
1 Stock I’m Buying in 2026 and Holding Forever was originally published by The Motley Fool
