---
chapter: 3
title: "The software the world runs on"
ticker: MSFT
company: "Microsoft"
buys:
  - date: "2026-08-31T18:00:00-04:00"
    price: 509.34
    shares: 1.963
proofs:
  - /proofs/ch03-mths9g1qnzjkb4.png
exitTest: "I'll sell if cloud (Azure) growth stalls for a sustained stretch and the business stops compounding — or if my code's signals prove to have no edge over time."
---

**What it is** — Microsoft makes software a large share of the world runs on: Windows, Office/365, and Azure (its cloud platform), plus gaming and a growing set of AI tools.

**Why now** — Same trigger as Berkshire: my code flagged MSFT as a reasonable time to start, so I took a small starter position and I'm sitting tight.

**The bet** — I'm betting that Microsoft's products are woven so deeply into how companies work that they're hard to rip out, which tends to make for a durable, cash-generating business — and that my code's timing is worth trusting a little while I test it. This is a "buy something solid and learn to sit on my hands" position.

**What could go wrong** — Again, my code is unproven and this could be a bad signal. Big tech can be disrupted, can over-earn on hype (AI expectations are very high right now), and can draw regulation. I paid the price the market set today, which may turn out to be too rich.

> The record continues below this line — append-only, each entry dated.
> The original text above is never touched. Quarterly checks, splits,
> dividends, and any options hedge on this position go here.