Microsoft is rated B/C tier due to 'good enough' software quality and lower perceived long-term upside compared to peers, despite strong distribution advantages.

So, what we'll do today, um, we have a tier list prepared. We actually have two tier lists. So, for one, we will talk about um the max 7 companies as you can see here. Plus, we have some extras.

So, we will talk about the Max 7s like you know, Meta, Google, Microsoft, those those sorts of companies.

and just generally you have a lot of these circular deals I think Sean when we covered Microsoft um which is also a company that we will list maybe we should do that one next um I think when we did the research in the episode, we were just sitting there trying to figure out where money is actually going in all of these circular deals and it was incredibly difficult.

Um, so maybe I'd start with that company next, Microsoft. Um, I got to say I pitched it a while ago. Um, I think the stock went up quite nicely afterwards, too. Um, we didn't own it.

We we didn't buy it for the um, for the portfolio.

I think there's a good case to make if we are just completely unbiased. Um, to also put it in the S tier. Personally, and it's just my gut feeling, so please um, give me a more neutral view, guys.

I think I would put it between B and C tier. And I think that's unfair to some extent because it's a diversified company. It also has a lot of the advantages that we talk about.

But you have a software suite where basically good enough has been you know the mantra for the last 10 10 years or 20 years. Basically a lot of the tools that they offer they sell in bundles and it works because for enterprise customers they can just use teams over Slack because that's good enough.

Um in times of AI where software will become better and better and it's way easier to build it. um Microsoft has this huge distribution advantage which is one of the most important things in AI and yet if I compare them to to Amazon and Google I just don't see them at the same level if you ask me 30 years out which company would I rather own.

Um so yeah I think I'll put it let's say Btier maybe maybe a mix of those two and you guys tell me where where it should go. Oh you guys tell me it's ST because it's the best company you ever see you've ever seen.

>> I mean from my standpoint I think you're you're completely correct there Daniel. I mean, um, for me, the reason that I've never owned the business, even though obviously it's been this massive compounder, is I just don't really use like any of its products, you know, like you mentioned Teams there.

We I I never use I use Zoom or I use Google Meets. Um, but, you know, I I do think that your point there on the distribution, that's really important. And I don't know, maybe they'll figure out how to improve some of their products and get them, you know, not just being good enough, but actually like much much better than everything else.

And if because they have that distribution advantage, you know, obviously they're going to be able to get that product in front of more eyes a lot quicker than, you know, some small startup's going to be able to.

Um, but yeah, I I I uh I think B or C makes complete sense to me as well. I that that that's I don't think it's at the same it's quite at the same level as either uh Alphabet or Google or sorry uh Amazon.

>> God, I don't know. Yeah, Microsoft to me is the one that probably Microsoft and Nvidia are the closest to being in my two hard piles. [laughter] Like I I think it I think they'll do well.

Like I don't see I don't see them getting massively disrupted. Um but I I I don't see the same durability um and and upside potential as as Google and Amazon. So yeah, I think I'm I'm happy with with Microsoft where it is.

so for me and video 30-year time frame I mean I got to look at our list here guys can we put it below SpaceX I think that's just harsh but otherwise we put it almost above Microsoft and Meta did we make a mistake here