Charlie Rose interview with Jeff Bezos of Amazon

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Jeff Bezos of Amazon talks about everything. AWS, Prime, customer obsession, Washington Post, Blue Origin, …

Good interview. 40 minutes.

https://charlierose.com/videos/29412

Thursday 10/27/2016
A conversation with Amazon founder and CEO Jeff Bezos.

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A terrific interview, thanks!

Is it any wonder that analysts using MBA cookie cutter metrics get Amazon wrong? But Jeff’s vision does not support indiscriminate buying. The stock exhibits the typical volatility of fast growing stocks and investors would do well to have the patience to buy on dips and to take some profits on big rises as a way to accumulate the stock.

The math is unyielding, the lower your cost basis the higher your return. With the above I’m not advocating making small profits trading AMZN. I’m advocating having a strategy worked out to accumulate the stock on the cheap. As an illustration,

  • Buy two shares for $100
  • Sell one share for $110
  • Cost basis of remaining share: $90 (plus trading costs*)
  • Rinse and repeat at any decent dip

Denny Schlesinger

  • If your broker charges $10 per trade then you can’t do the above, you need to buy a bigger lot of shares
  • Buy 20 shares for $100 (cost 2000 + 10 = $2010)
  • Sell 10 shares for $110 (cost -1100 + 10 = -$1090)
  • Cost basis of remaining shares: $92 (including trading costs)
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Jeff Bezos of Amazon talks about everything.

Great interview! Thanks to Surfnow for posting it!
Saul

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