The Rising Influence of Rising Affluence

[DewDiligence]

Companies like CAT, Boeing, Sap, IBM or Microsoft are in a class of their own because of their size and competition.

I agree with your take on IBM, in which I know have a decent-sized position. I used to think that IBM’s quarterly numbers were too good to be believed insofar as the company produced quarter after quarter of robust profit growth on little or no increase in revenue. Eventually, I relented and acknowledged that IBM is indeed putting up great numbers because its business model and steam of annuity-like service revenues is unduly compelling, and the aggressive share buybacks are highly accretive to EPS.

p.s. I sold BA about nine months ago and haven’t looked back. I’ve never owned MSFT, although it might be tempting at some point.