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Your Retirement Life: My Latest Advice on Amazon Stock

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blue-originLately, I’ve been obsessed with everything Jeff Bezos, CEO of Amazon. I’d love to own his stock, but not at these prices. Does that mean the stock is going down? Hardly! I just don’t see the margin of safety—a term coined by the late, great Benjamin Graham who taught Warren Buffett a thing or two about investing. You won’t be surprised by this, but Mr. Graham paid particularly close attention to one word: Dividends.

Bezos’ Amazon doesn’t pay a dividend. But it does deliver. Sometimes the foyer at my house feels like a fulfillment center with all the boxes. Everything Bezos touches, like an anti-Midas, goes down in price. He’s what Walmart wants to be when they figure out this internet thing. And by the way, it is a thing.

How long will it take Amazon to supplant UPS? Fedex? I don’t know, but I’m not betting against Jeff. You want a cheaper way to get to space? Leave it to Jeff. I signed-up for tickets to space at Blue Origin, his rocket company, simply to watch how fast ticket prices go down. I’ll call it Bezos’ Law .

But let’s not let the billionaire have all the fun. Imagine if his stock paid a dividend. You’d have a seat at the table for every shareholder meeting. “So what?” you’d say to yourself, “if Bezos doesn’t like the bright lights of CEO stardom.” You’d be heard. You would be the one clinking your tin cup on the glossy conference table, “Ah, Mr. Bezos, about this quarter’s dividend,” you’d pronounce, “can we expect an increase?” Note to self: Just ask for that dividend increase when he’s in a good mood. Right after that infectious laugh would be good.

OK, so the dividend from Amazon, never mind the increase, isn’t coming anytime soon. One way to invest in Amazon right now is to align your portfolio in dividend paying companies that benefit from Bezos’ Law. You get the best of both worlds: Jeff and Dividends. No reason to bet against Jeff. Are you crazy? And no reason to invest in this stock market unless you’re getting paid (dividends). Now what? Want to invest in our latest idea? Subscribe to our client letter (free even for non-clients), or let us do the heavy thinking and become a client at Richard C. Young & Co., Ltd.

Flight Four – One Chute Out

 

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.