Trusted Brands: Value Investing


35 years after the release of its first operating system, Microsoft remains an integral provider of technology services for commercial and personal use. Even though mainstay software products like Microsoft Office continue to earn the greatest revenue share, last year’s figure of $86 billion dollars was also driven by significant improvement in new sectors such as gaming and cloud services. An impressive 20% year-on-year growth has allowed Microsoft to entrench themselves in the business of cloud computing; CEO Satya Nadella estimates that earnings from this segment could rise to 20 billion by 2018. Even though the company has lagged on a handful of key technological trends—most notably mobile devices—a free cash flow of $23 billion dollars will position Microsoft for a stable future. Conservative, income-oriented investors are attracted to the 2.7% yield that is likely to increase in the coming years. 

For an in-depth breakdown on Microsoft, read this Barrons article.  You will be leaving the New Vernon Wealth website.


Procter and Gamble is the only consumer packaged goods company with sales of over $80 billion dollars. Since 1837, P&G’s commitment to innovation and mass marketing has helped brands such as Tide, Gillette and Crest achieve close to 50% market share. Over the last decade, increased competition and changing consumer trends caused P&G to chase the lucrative margins of the beauty and cosmetic sector. However, after years of limited growth, current CEO A.G Lafley chose to sell 43 of these brands. Despite the disappointment, a profitable core business of consumer staples should help preserve shareholder value; P&G has increased its dividend for 59 consecutive years.

Further reading can be found in the Wall Street Journal.  You will be leaving the New Vernon Wealth Website.