Microsoft (MSFT, Financial) continues to compound revenue and earnings at a solid clip. Revenue grew +20% on a currency-neutral basis, with operating earnings growing by +27%. Microsoft’s operating earnings are up almost +60% over the past two years as its cloud-based productivity solutions and infrastructure as a service (Azure) benefit from higher pricing and increasing scale, respectively. The Company is also amassing impressive scale for its video game content franchise, which partially figured into our decision to exit Electronic Arts. Microsoft exhibits multiple avenues for strong multiyear growth and remains a core holding in portfolios.
From David Rolfe (Trades, Portfolio)'s Wedgewood Partners fourth-quarter 2021 letter.
