Great ideas don’t always translate into great investments. Remember Amazon almost going out of business in the dot com bust? When I think of Jeff Bezos I think of Steve Jobs. Both are, and were one of a kind. That doesn’t mean I’d buy their stocks.
There’s plenty of ways to benefit from Bezos’ Law, which I define as whatever business Bezos decides to get into, “prices will be lower.” But, and here’s the catch, to make Bezos’ Law into the law of the land, Mr. Bezos needs LOTS of capital and GREAT people working for him. The ONLY way to make that work is with a high stock price to reward both parties.
The person missing from this equation is me, the boring, income investor. I’m the outsider. What motivates Bezos to keep me around? NOTHING.
I don’t like investments that can go to the moon and back. I love space and the idea of a moon settlement. Just not with my money. I need it to live here on earth. As an investor I’m happy to wait. I’ve got time. Someday Mr. Bezos may want me in the mix. Until then, I’m in no rush.