Microsoft, which is selling at about 18 times earnings, is starting to show up in a lot of value portfolios. It's a wonderful company, but we don't own it. Microsoft sells at about six times sales because it has 30%-plus net margins. But what we're increasingly learning is that you don't necessarily have to buy Microsoft products. You can get a lot of them from Google. And then you've got Linux and all sorts of other stuff. So, to me, the 30% net margins at Microsoft are a great big cake in the rain.
Source
Source
