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The Motley Fool& #39;s Rule Breaker Portfolio bought shares of Amazon on September 8, 1997. Here are some of my favorite snippets from the write-up report, courtesy of @DavidGFool and team at @themotleyfool. A lot of fun to review, and plenty of timeless principles. (Thread) $AMZN
http://AMAZON.COM"> http://AMAZON.COM , INC.
Nasdaq: AMZN
Type: Small-Cap, High Growth
Closing prices: $36 bid, $36 1/4 ask
http://www.amazon.com"> http://www.amazon.com
Market Cap: $856.8 million
Trailing 12-month sales: $56.5 million
Price-to-sales: 15.1
Trailing 12-month earnings per share (eps): ($0.61)
Nasdaq: AMZN
Type: Small-Cap, High Growth
Closing prices: $36 bid, $36 1/4 ask
http://www.amazon.com"> http://www.amazon.com
Market Cap: $856.8 million
Trailing 12-month sales: $56.5 million
Price-to-sales: 15.1
Trailing 12-month earnings per share (eps): ($0.61)
"Of course, as we& #39;re patient investors who buy with the idea of holding on to our latest pick for at least a year or two -- if not indefinitely -- we& #39;re not buying Amazon because we particularly care about our portfolio& #39;s 1997 fourth-quarter returns." $AMZN
"We& #39;re buying Amazon because we like the company and its brand name, we like the business, we& #39;re happy customers, and we believe AMZN is well positioned to earn Foolish investors good long-term rewards."
" http://Amazon.com"> http://Amazon.com & #39;s Internet & #39;sales floor& #39; offers 2.5 million titles; the largest chain book store offers 170,000 titles; the average mall store, only 25,000." $AMZN
"Amazon doesn& #39;t need to worry about building a new store every time that it wants to gain more sales, or increase market share.... In fact, it would be impossible to offer 2.5 million titles any other way."
"Amazon& #39;s retail store is constructed of programming language, and little more. It& #39;s held up by servers and networks. It reaches every corner of the earth with little effort. Amazon will never need to & #39;break ground& #39; in order to expand its & #39;shelf offerings.& #39;"
"The Internet arguably represents the best way in which the world can find and buy books, easily and quickly. Online commerce is growing at an incredible rate, and we certainly don& #39;t think that is going to change anytime soon. It only continues to grow larger."
"Meanwhile, is http://Amazon.com"> http://Amazon.com going to continue to sell only books as the years go by? Already the company has addressed the possibility of branching into other specialties as well, with music being one option." $AMZN
"In fact, let& #39;s just list out sequential quarter-over-quarter revenue growth, to get some sense as to why The Motley Fool is interested in this company:
Sept. 1996: $4.2 million
Dec. 1996: $8.4 million
Mar. 1997: $16.0 million
Jun. 1997: $27.9 million"
Sept. 1996: $4.2 million
Dec. 1996: $8.4 million
Mar. 1997: $16.0 million
Jun. 1997: $27.9 million"
"Of course, Fools don& #39;t just look at sales numbers.... However, we& #39;re dealing here with a company whose founder stated three years ago (and quite intelligently, we might add) that shareholders shouldn& #39;t expect profits for five years."
"We& #39;re not focused on trying to make the company profitable," Bezos stated in the Upside interview. "If we& #39;re profitable anytime in the short term it& #39;ll just be an accident."
"The company is instead focused on maximizing its customers, its repeat purchases, and the reach of its brand name. We& #39;re not going to sit around expecting profits this year or next, because we& #39;re looking 5-10 years ahead, not a few quarters."
"To be able to invest in Amazon or any Internet company with little to no existing profits, you must make an effort to picture the future."
"An investment in Amazon or a company like it necessitates just this sort of imaginative projection, informed by a good old-fashioned Foolish common sense."
"When we find something we like, we generally don& #39;t worry too much about & #39;timing& #39; the market. We buy, and we hold. Fool on!"
Full buy report: https://www.fool.com/archive/portfolios/rulebreaker/trades/1997/09/08/the-rule-breaker-portfolio-buy-amzn-september-08.aspx">https://www.fool.com/archive/p...
Full buy report: https://www.fool.com/archive/portfolios/rulebreaker/trades/1997/09/08/the-rule-breaker-portfolio-buy-amzn-september-08.aspx">https://www.fool.com/archive/p...
That $11,000 investment would be worth $8,860,495 today.
- Make an effort to picture the future.
- Think in terms of years and decades, not months or quarters.
- Don& #39;t worry about timing the market.
- Embrace imaginative projection, backed by Foolish common sense. :-)
- Make an effort to picture the future.
- Think in terms of years and decades, not months or quarters.
- Don& #39;t worry about timing the market.
- Embrace imaginative projection, backed by Foolish common sense. :-)
