October 17, 1999. Bill Gates knows how to run a company. And from this writer's standpoint, he is not stopping or willing to slow down. Over the past three years, Microsoft posted annualized profit growth of almost 50%, and increased their net profit margins to a mind boggling 40%.

The company also throws off more cash than most small countries. Gates spent $5 billion investing in AT&T with their software for the cable TV set top boxes. Microsoft develops microcomputer software, primarily under the Windows name. This software includes operating systems for personal computers, office machines, personal information devices, language and application programs, and multimedia products. They also operate the Web TV Internet access service.

Microsoft warned of slowing growth in their recent fiscal fourth quarter earnings release, citing slowing PC demand and uncertainty surrounding the Y2K issue. Even though Microsoft has a long history of reining in analysts growth expectations, the company's words may very well ring true this time around.

Microsoft has almost 90% of the market for desktop operating systems and office applications. However, Microsoft is being forced to look to other areas of the computing market for new growth opportunities. They are targeting high-end enterprise systems and hand-held information appliances. Microsoft will challenge this system using their massive war chest liberally when the right opportunity presents itself.

With Gates at the helm, you can be sure that whatever he takes on it will be a success with their shareholders. The stock is pricey at the moment, but Microsoft is a powerhouse and should be a core holding for all investors. I own shares of Microsoft.

Ticker symbol: MSFT

George