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No. of Recommendations: 6
First, some disclosure. I am long MSFT and have no plans whatsoever to sell.

I may be wrong, but I would be shocked if the RM managers sell Microsoft. I believe that they will hold on to their shares for the following reasons:

First, even though the judge has ruled, I still believe that whether or not MSFT was deceitful and underhanded is a matter of opinion. As far as I know they never literally broke the legs of any person or competitor. Were they aggressive in trying to eliminate their competitors? Yes, they were. Would most any company in America, if given the same opportunities as Microsoft, have played the game the same way? From where I sit, yes they would. We can debate this all night long, but MSFT does not stand alone in the line of companies who compete as aggressively as they can get away with.

The second reason to hold your shares is that, historically, the remnants of companies broken up by antitrust (e.g. Standard Oil, AT&T), have fared quite well for investors. Holding the shares has usually been profitable.

In my mind, I'm not ready to throw in the towel on Microsoft's management just because Thomas Penfield Jackson says I should. In fact, I look at it in just the opposite way. MSFT's managers did their job TOO WELL. So well that the government had to step in and change the rules of the game for them.

Not that breaking up the company won't be good for competition, stimulate innovation, and all that good stuff. In fact, I think it will. But that's not what I bought when I bought my shares of MSFT. I bought the opportunity to maximize my investment, nothing more and nothing less. I think that's still possible and I won't be selling under the existing set of circumstances.

My purpose with this post is not to irritate anyone or cause undue debate over Microsoft's morality. I'm just stating my opinion on the issue.

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