How Much of Microsoft's Growth is Due to Inflation?

Microsoft has returned +504,659.3% nominally since 1986, but only +57,109.1% when adjusted for M2 money supply expansion. This means approximately 88.7% of Microsoft's price appreciation is due to monetary expansion rather than real value growth.

Microsoft has significantly outperformed M2 money supply expansion, indicating strong real value appreciation. This suggests the asset has generated genuine wealth beyond what can be explained by monetary expansion alone.

Adjusting stock performance for M2 money supply expansion reveals how much of price appreciation is due to monetary policy versus real value growth. This perspective helps investors understand whether an asset is generating genuine wealth or simply keeping pace with money supply growth.