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There different ways to value a company beyond their ability to profit in the near term. Walmart perfected 20th century shopping and are reaping dividends for
by skylan_q 11y ago
There different ways to value a company beyond their ability to profit in the near term.
Walmart perfected 20th century shopping and are reaping dividends for it in terms of current monetary profits.
Amazon is working on perfecting 21st century shopping. Bezos owns 18% of the company and he plays a long game. He sees what others don't see.
e.g. He was supposedly an idiot for selling books online.
- _delirium 11y agoI don't necessarily disagree with the strategy, but I'm not sure that's Bezos's own game as far as his personal finances go, or that his game is even that long in that respect. Bezos owns an 18% and declining share of the company, which he has been slowly liquidating. He owned 41% when it went public, and has been steadily selling around 1% of the company each year. So his own fortunes are becoming less and less tied to those of Amazon, except in terms of ego/reputation.
- adevine 11y ago> e.g. He was supposedly an idiot for selling books online. By whom? Everyone I know who first used Amazon back in the 90s thought it was a great idea. I think it's weird how we've fetishized the idea that "everyone else thought that business plan was crazy except for the visionary founders." If anything, I'd argue these founders are "geniuses" because they executed better than anyone else at the time, not that everyone else thought the idea was crazy.