MSFT valuation is not expensive given its growth; expected to rerate higher.

Next up, we have Microsoft. This one is number seven. a $19,000 position, 55K in the green. So far, it's trading at a 26 forward PE ratio. These are not expensive numbers.

There hasn't been many time periods in the past where a group of companies this powerful with this much distribution growing this quickly. High teens revenue growth have been trading in the mid to low 20s PE ratio.

I've really not seen anything like this. These companies will get rerated higher when investors become excited about them again.

Imagine for example if Microsoft because of AI could fire 10% of its employee base. So they lay off 10% of their employees. Do you think those tens of thousands of Microsoft engineers and developers are going to sit around and do nothing forever?

Not a chance. They're going to start businesses. They're going to start new companies, new software. They're they'll use the skills that they learned plus artificial intelligence to spin up new products and services.

Many of them will get jobs at other companies that need talent that now Microsoft freed up and made available in the workspace. But also many of them will create entirely new products.

That is a positive sum game. Microsoft in that scenario would get the same level of productivity with 10% fewer employees.