00:00 Josh
Where are there opportunities within software? If you look at just Barron’s stock picks over the last month, we came out and said we’d be buyers of Okta here. We’d be buyers of Microsoft at these levels. I mean, our cover story a couple weeks ago was Microsoft simply, honestly, off a a basis of its valuation is at its lowest compared to the S&P 500 in 10 years, right?
00:20 Speaker B
100%.
00:20 Josh
And do you think Microsoft is really going away in this software sell off? Again, a long-term investing perspective, right? Not a trade.
00:27 Speaker B
Right. No, I don’t think Microsoft is going away in the next 5 to 10 years.
00:29 Josh
It’s down 36%
00:30 Speaker B
off its high. It’s down 20% year to date, but 36% off its high.
00:35 Josh
Right.
00:36 Speaker B
And I agree with you. I think it’s a screaming, I think it’s a screaming buy.
00:40 Josh
And what we’re trying to tell subscribers though with that is you do have a lot of headline risk right now, right? So we’re saying get into Microsoft. It might be choppy for a couple of weeks, really even a couple months at this point, right? We’re still in a headline driven market. We’re watching oil every day. So it’s not like this is instantly going to work right now, but over the long run, we think there’s opportunities in some of those things.
00:59 Speaker B
And so the other thing I always tell clients and especially, you know, maybe younger people that you’re advising is that you’re not going to you’re not going to take all your money today, all the money you have allocated and say, I’m going to buy it all today in Microsoft. Absolutely not. You’re going to dollar cost average it, going to take advantage of the swings in the market. And even if if it swings higher, next month you want to put a little bit more to work, that’s okay. You’re just going to use the same dollar amount, you’re going to buy a little bit less at the higher prices, but you’re going to buy more if it backs off.
01:25 Amanda
And and Microsoft feels pretty safe. Like where where where can we take a little more risk? I think is the question that I don’t know, Josh, don’t want to speak for you, but I I’m definitely asking.
01:32 Speaker D
Yeah, no, I think because what the view you’re talking about is a longer-term view. You know, and saying so if it goes down, I’m always the camp I’d rather be a little early. I don’t care if it goes down a little bit, but I want to be there for when it continues its ascent.
01:41 Speaker B
Right. I agree. Which is why I think now is a perfect opportunity to start to look at some of these names that have really gotten beaten up. And you know, to Amanda’s point, it’s great. Names like Microsoft, they’re safe, but, you know, she’s got more time, right? You guys are much younger than I am. I’ll speak for myself. But you’re much younger than I am and so you’ve got time on your side. And, you know, it’s the usual, it’s time in the market, not timing the market, trying to pick tops and bottoms. But I think you have to be, especially even at Amanda or your age, you still have to be selective on building a strong enough portfolio uh that’s going to weather the storm and then around the fringes, you can take a little bit more risk if you want, because you have time to do that.
