3 ms·
There is a secret sauce: pairing a company (Amazon.com) with heavy net operating losses (NoLs) with a very profitable company (AWS). The result? Amazon pays ze
by cwwc 6y ago
There is a secret sauce: pairing a company (Amazon.com) with heavy net operating losses (NoLs) with a very profitable company (AWS).
The result? Amazon pays zero taxes and can continually expand. The NoLs offset the profits, and every time Amazon has a division that becomes profitable they offset it by entering a promising but loss-inducing new sector. Then, when that division becomes profitable - rinse and repeat.
This is Bezos’ genius.
- thewarrior 6y agoAre taxes such a serious constraint on company growth when funding is so easily available ?
- cwwc 6y agoHm. Not sure, that’s an excellent point. It may not be a constraint, but I think it is a massive incentive.
- voodootrucker 6y ago> This is Bezos’ genius. His genius is gaming a readily game-able tax system for personal gain and public loss? I do agree it's what he's good at, but I disagree about it being "genius" and question whether it's worthy of praise.
- ykevinator 6y agoMorality is not real, he is a genius at this.
- cwwc 6y agoConcurred.