I posted here about David Einhorn's top pick (Microsoft)
I posted here my view on Microsoft business model and Microsoft battle with Google.


I still couldn't figure out why David Einhorn picked Microsoft as his top pick.Here is the reason why:

Microsoft chief executive Steve Ballmer  is about to buyback as much as $US20 billion, according to a top-rated software analyst Heather Bellini. 

Heather Bellini of UBS AG, ranked the best software analyst by Institutional Investor magazine in 2007.
   
A buyback of between $US15 billion and $US20 billion would increase earnings per share by as much as 10 cents annually, Bellini said. She expects shares of the Redmond, Washington-based company to climb 53% to $US40 in the next year.
    
Analyst Jane Snorek at First American Funds said she has lost confidence that Mr Ballmer would ever get it right on internet businesses. Only a big buyback will change her mind, she said.

"They can't catch Google. They're wasting money on a battle that they've already lost.''