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Can I ask what you expect to occur that will produce the upside or dividend on your investment and what kind of time frame you're operating on?
by OrwellianChild 12y ago
Can I ask what you expect to occur that will produce the upside or dividend on your investment and what kind of time frame you're operating on?
- wdewind 12y agoSure I think that's a reasonable question. On a basic level I expect that Amazon will continue to grow, and that in the future the value of the stock will be increased and that I'll be able to sell it. I think an Amazon that was paying dividends could be great, or not, but it doesn't sound like a business that I understand so I wouldn't invest in that because I don't think I could evaluate it. I'm investing in Amazon because I believe in Jeff Bezo's thesis and like what he's doing. It's also a significant but not life changing amount of money invested, so I'm comfortable having my own investment ideas here instead of playing safe with mutual funds, which is what I usually do. But more importantly: why do I expect Amazon will continue to grow? Because they have an extremely large e-commerce business that is providing a base for them to expand into other markets, and because they have demonstrated ability to do so. AWS, Fire, Prime, content etc., are all built on an extremely solid e-commerce foundation. AWS is huge, and is expected to be more and more of Amazon's total business (7% in 2015), and I am betting that they will continue to make new business lines like AWS. My time frame is very long, I'm young and don't need the money anytime soon.