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The money made by holding Amazon is value created, not value extracted. In 2000, Bezos, early employees, and investors could have decided to cash out by issuing
by Aunche 6y ago
The money made by holding Amazon is value created, not value extracted. In 2000, Bezos, early employees, and investors could have decided to cash out by issuing dividends or buying back their own shares with Amazon's profits. Instead, they chose to reinvest that profit into Amazon in the form of new fulfillment centers and new workers. This gave Bezos even more potential profit, but again he chose to reinvest it in the company. This compounded for two decades, so now Amazon is a trillion dollar company. Without someone holding the stock, Amazon would not have grown to the extent that it had. Even if Bezos sold his shares to someone else, that other person needs to decide to reinvest Amazon's potential profits back in the business.