This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Microsoft's Similarities to Apple Will Be Its Salvation

NEW YORK (TheStreet) -- Investors are well aware of the concept of wealth creation. There are several ways that can be done. The first is wealth extraction from others. Another is the creation of new wealth by developing things of value.

The focus here is on Microsoft (MSFT - Get Report), the creation of new wealth and what I think it's doing right.

Microsoft, like Apple (AAPL), focuses on the idea of wealth creation for its customers by virtue of paid services. Customers build their own companies and they use Microsoft's software and services to succeed financially. In other words, a non-free investment results in potential wealth creation.

This is what Apple is so good at, so this parallel, legacy vision of Microsoft means that customers are willing to engage in expenditures with the belief that they can leverage the cost into a real return on equity.

However, Apple's ads do a better job of pointing that out than Microsoft's. Apple emphasizes personal creativity that produces goods of value: Mac and iOS apps, writing, art, music,and so on. In contrast, Microsoft's ads emphasize dreary work with business software and half-baked tools like the Surface Pro tablet.

Must Read: Square Is Unveiling a Way to Help Cut Down on Credit Card Fraud

Of note is that Apple has paid over $20 billion to all its developers to date. Doing business with Apple's best-of-breed hardware and development tools has paid off. That's some serious financial incentive.

Another important point here is that in order to convince people they can build wealth safely, privacy and security are paramount. Apple and Microsoft also share that value.

For example, if a 19th century farmer worked very hard to sell his crops, then deposited his earnings in a local bank and then the bank were robbed every week, the infrastructure would fail him in his wealth creation no matter how good his tractor.

The Limits of Wealth Extraction

When customers have confidence in the tools and infrastructure, they spend their money with cautious optimism, even cheer, because the future looks good to them. They love their tools and they love creating valuable things with them.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSFT $49.87 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs