Known by virtually everyone, Microsoft is considered the largest software development company in the world.
It is no coincidence that the owner of the Windows operating system has had its founder, Bill Gates , topping the list of the richest men in the world several times with Microsoft Consulting firm .
Founded 45 years ago, Microsoft Corporation is listed in the programs and services sector of Nasdaq , one of the North American Stock Exchanges .
It is also part of the S&P 500 index , with one of the highest positions in the list of the 500 largest companies in the United States.
This is because Microsoft Corporation is one of the three most valuable companies in the world, with offices around the world and more than 166,000 employees, according to the company's official website.
Even during the 2020 pandemic, its market value continued to grow and reached $1.6 trillion .
Want to know how Microsoft got to this level? Better yet: want to know how to invest in Microsoft?
Let's go together? Good reading!
Who is Microsoft?
Microsoft is an American multinational company that is part of the technology sector of the exchange . It operates mainly in the development, sale and licensing of software. In this context, the most important are Windows and the Office suite .
In addition, it also develops and sells video games , electronic products, smartphones, applications, platforms, educational devices and augmented reality systems.
Microsoft is a company that revolutionized the computing market , being the biggest software developer. Or do you know someone in your social circle who has never used Windows and any program in the Office suite?
It is only among the most valuable companies in the world because it has a huge diversification of products and acts at the forefront of innovation.
Shall we better understand the history of the company?
Microsoft's History
Microsoft's history begins in 1975, when the company was founded by Bill Gates and Paul Allen .
Let's check out the timeline of one of the most important technology companies in the world together?
The birth of Microsoft
Bill Gates and Paul Allen met in high school because they had a common interest: computing. After that period of high school, they ended up drifting apart.
Later, when Bill Gates was a 19-year-old student at Harvard University and Paul Allen had just dropped out of the University of Washington, the two were reunited.
In this reunion, they decided to rekindle their friendship and turn their interest in computing into a small business.
The Microsoft project – a union of the terms microcomputer and software – was born in 1975.
BASIC and the partnership with Steve Jobs
The first product developed by Microsoft was BASIC language software . It was developed by Bill Gates and Paul Allen for use in IBM's Altair 8800 computers.
Four years later, in 1979, IBM was looking for an operating system for the brand's new computer and hired Microsoft.
However, Bill and Paul did not have a ready-made system with the specifications that IBM wanted.
The solution found by the two young men was to buy the Q-DOS system , which was developed by the company Seattle Computer Products, with the intention of improving it and transforming it into an MS-DOS — Microsoft's system with disk technology.
After paying $50 for Q-DOS , Gates and Allan found their idea overshadowed by Lisa, one of Apple's computers.
Seeing himself in this situation, Bill Gates decided to make a proposal: he wanted Steve Jobs to let him participate in the design and development of Apple's new computer.
By convincing Jobs of the partnership, Bill Gates managed to copy the entire Macintosh interface and sold a similar version to a Japanese company, which is why Steve Jobs ended the partnership.
About Windows
The first steps of the most famous operating system in the world began in 1981, but it was only released in 1985.
The first version released, Windows 1.0 , came with a mouse and was for home use. The system was multitasking, that is, it allowed the user to use more than one program.
In addition, it came with some useful applications such as calculator, calendar, notepad, clock and the famous Paint.
Later, in 1987, Windows 2.0 was equipped with more tools, applications and features such as keyboard shortcuts, Word, Excel and the options to maximize and minimize the screen.
With the success and growth of Windows and Microsoft, the operating system grew, as did the company's other products.
As they conquered the market, versions 3.0, 3.1 and the famous Windows 95 and 98 were released .
Conquering new markets
Bill Gates and Paul Allen wanted to expand Microsoft's horizons and conquer markets beyond software.
From this goal and with the extreme competitiveness of Bill Gates, Microsoft launched Internet Explorer, Windows Media Player (to compete with iTunes) and devices like Xbox and Zune, putting both feet in the world of games
Here, two tips: if you are interested in knowing about the most important entrepreneurs in the world and the most influential computer nerds, we have two entertainment recommendations:
.The first is the documentary “Triumph of the Nerds”, which has interviews with relevant names such as Bill Gates, Paul Allen, Steve Jobs and Steve Wozniak.
. The second tip is the movie “Pirates of Silicon Valley”, which talks about the birth of computing and the rivalry between Apple and its Macintosh with Bill Gates' Microsoft.
Bill Gates e a Microsoft
Paul Allen had an undisputed performance at Microsoft, but who became the face and personification of the company was Bill Gates .
William Henry Gates III was born in October 1955, in Seattle, United States. Since 1990, he has been elected the richest man in the world for several years in a row.
At the beginning of 2020, he was number two on this list, with a net worth valued at $120 billion — behind only Amazon's Jeff Bezos.
He is not the son of millionaire parents, but he had a very peaceful and comfortable childhood, along with his sisters.
Son of a lawyer and a teacher, he always studied in the best schools where he lived.
At just 17 years old, Bill and Paul developed software for reading magnetic tapes. However, the project did not work out.
Competitive, revolutionary and one of the pioneers of the computing revolution, Bill Gates is also the author of great works, such as The Road to the Future , which addresses the computer revolution.
Over the years, Gates has donated around 27% of his entire fortune to projects and charities.
About 5% of these donations refer to Microsoft shares, which were donated to the Bill & Melinda Gates Foundation — a foundation to which even Warren Buffett donated.
In addition, he has received honorary degrees from renowned universities such as Harvard.
Bill Gates' influence on Microsoft
With the ideas and entrepreneurship of Bill Gates, Microsoft became a multinational of importance and world renown.
Far beyond Windows, the company is responsible for revolutionizing the technology market and making many innovations accessible, while prioritizing social responsibility actions.
Gates ' influence on Microsoft's format and products is the result of years of study and projects that he tried to develop on his own.
Just as an example of Gates' obstinacy: at age 16, he worked at an arcade, where he had the job of developing basic software that would be used in gaming machines.
It is no accident that many experts attribute Microsoft's success to Bill Gates' perseverance , dedication, and visionary and revolutionary intelligence.
Bill Gates of the Covid-19 pandemic
Gates gained a lot of attention during the Covid-19 pandemic. The billionaire has spent years warning people and governments about the risks of all humanity suffering from a pandemic caused by a new disease.
Alert that is available in his 2015 Tidal talk . According to the Wall Street Journal, Bill Gates even warned Donald Trump personally about the need to prepare and invest efforts and resources to prepare for a pandemic.
With his prediction coming true, Bill Gates made donations to laboratories and companies involved in developing a vaccine against Covid-19.
Now that you know the history of Gates and the company, let's cover Microsoft's services and products.
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Microsoft products and services
Microsoft products and services are categorized into: software, computers and devices, entertainment, business, development and others.
Not to mention its various versions, the company sells 40 types of products and services that are used by companies, students, entrepreneurs and various professionals.
Let's find out what they are?
Software's da Microsoft
In the software category, the company sells:
1.Windows
2.Windows apps
3.Outlook
4.OneDrive
5.OneNote
6.Skype
7.Microsoft Teams
8.Microsoft Edge
Microsoft computers and devices
On computers and devices we have:
1.Computers (such as the Surface model)
2.Accessories
3.Smartphones
4.Shop Xbox
5.VR (virtual reality) and mixed realities.
Entertainment
In the entertainment category, comes Microsoft's games wing:
1.Xbox games
2.movies and TV
3.PC games
4.Xbox Games Pass Ultimate
5.Xbox Live Gold
6.Windows digital games
Business products and services
In business-oriented products and services, Microsoft sells:
1.Microsoft Azure
2.Microsoft 365
3.Dara Platform
4.Microsoft Dynamics 365
5.Power Platform
6.Shop Business
7.Microsoft Advertising
8.Microsoft Teams
Development
In the development part, Microsoft works with:
1.Visual Studio
2.Docs
3.Windows Server
4.Windows Dev enter
5.Power Apps
6.HoloLens
In addition to these, which are Microsoft's main products and services, the multinational has some other programs, such as those aimed at education, licenses, gift cards, training and workshops.
Microsoft data
That Microsoft is a giant in the technology market, you may already know. That your operating system is one of the most used in the world, too.
But, do you have a dimension of the importance and appreciation of Microsoft in recent years?
Let's see, in numbers, how the company of Bill Gates and Paul Allen is part of the lives of billions of people and why it is a company with strong competitiveness and resilience.
One billion Windows 10 users
In January 2020, Microsoft announced that it had reached the 1 billion user mark of its Windows 10 operating system — two years ahead of the target that had been set.
44 million Microsoft Teams users
Microsoft Teams is a platform for group communication, video conferencing and document and file storage.
In 2020, the platform reached the number of 44 million daily users. Accesses generated more than 900 million minutes of videoconferences and virtual calls.
Skype , which is also from Microsoft , had a 70% increase in users, adding 40 million active accounts in 2020.
Xbox Live with 90 million users
In fierce competition with PlayStation, the Xbox Live platform has about 90 million users — according to data released by Microsoft for the first quarter of 2020.
Microsoft does not market games
Microsoft Gaming and Entertainment is the Microsoft subsidiary that handles all gaming and entertainment related products and services.
The company was founded in 2000 by Seamus Bleckley after the announcement of the Xbox console in the same year.
With the Xbox 360 came some of the company's most famous releases, such as Halo 2 and Gears of War.
Within the games segment, Xbox-related lines are by far the company's biggest successes.
The Xbox 360 appeared in 2005 and became the company's most successful console, reaching 87 million units sold.
In 2019, during The Game Awards, Microsoft announced the 9th Generation of Xbox Consoles, under the name of Xbox Series X.
Microsoft financial data
Despite so much renown in the market, is it worth investing in Microsoft ? Is it worth considering the investment to have this company in your portfolio?
Let's take a look at some of the company's financial data.
According to figures released by the company, referring to the first quarter of 2020, Microsoft had net income of US$ 10.8 billion and net revenue of US$ 35 billion . This in just three months.
These data represent growth of 15% in the company's net revenue and 22% in net income.
This is important data not only for the growth and appreciation itself, but also considering the scenario and global financial and health crisis caused by the Covid-19 pandemic.
That is, even in unfavorable moments, Microsoft has products, services and management that manages not only to maintain results, but also to grow .
This is an important issue to be evaluated before investing, especially in long-term strategies, such as buy and hold and value investing .
Microsoft stock appreciation
Now, let's talk about investing in Microsoft shares , to see if it was worth investing in the company in recent years.
While past returns are no guarantee of future returns, it is worth looking at this appreciation to understand how the market prices the company.
As an example, let's assume that an investor has plotted a 32-year long-term strategy. That is, from the year of Microsoft's IPO to 2018.
If he had invested $1,000 in the IPO, he would have, in 2018, $1.6 million, including all dividends paid.
This tech giant ranks third among the world's largest companies, with a market value of $1.6 trillion. To give you an idea, its market value exceeds the GDP of many countries.
In 2019, Microsoft delivered a 60% return to its shareholders. One of the many reasons for this was the change in the company's leadership.
Since Satya Nadella took over as CEO in early 2014, Microsoft has become a world leader in cloud computing services .
This was a reflection, among other things, of investment in infrastructure for cloud computing and in data centers.
How to invest in Microsoft
To ensure diversification and access to the world's largest companies, Warren launched the Warren Games fund and the Warren Tech fund. .
They are two funds with very specific strategies, to ride the wave of two sectors that are very promising for the coming years.
The choice of assets is made by Warren's management team. In the Warren Games fund, Microsoft is one of the companies, alongside companies like Sony, Tencent and Activision Blizzard .
Want to invest in this fund? You need to open a Warren account . It's fast, online and 100% free.
Another option to invest in Microsoft directly is through BDRs . At Warren, you invest in BDRs with zero brokerage through our Exchange tab.
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