Weitz Large Cap Equity Fund on Microsoft Corporation
Thesis
Microsoft is one of the fund's large hyperscaler cloud and AI service-provider positions. Its shares lagged during the quarter as investors became more selective about companies purchasing large quantities of AI chips. The fund nevertheless believes Microsoft remains competitively well positioned and should earn reasonable returns on its heavy capital investment.
“We continue to believe that all five companies are competitively well positioned and poised to earn reasonable returns on their voracious capital spending.”
Key risks
- Investors are increasingly scrutinizing whether heavy AI capital spending will generate acceptable returns.