My Foolish dueling partner is right: Microsoft
Just look at Vista. It took more than five years to release the long-awaited update, and even that launch was delayed. Compare that performance with Apple
Furthermore, while Google
True, a quick glance at Microsoft's stock suggests that it isn't screamingly overvalued. It's trading at 16 times fiscal 2008 earnings -- that's about on par with its expected growth and is much less heady compared to, say, Apple's comparable numbers. (However, it's interesting to note that Apple and Microsoft have very similar PEG ratios.)
But when it comes to putting one's money to work, it seems to me that Microsoft may very well end up being nothing more than a staid investment when other stocks would yield more impressive growth.
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Microsoft is a Motley Fool Inside Value recommendation. To find out what other stocks Philip Durell has recommended as bargains, take the service for a 30-day free trial. Alyce Lomax does not own shares of any of the companies mentioned.