TIP637: Jeff Bezos's Shareholder Letters w/ Clay Finck

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 14 June 2024

⏱️ 65 minutes

🔗️ Recording | iTunes | RSS

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Summary

On today’s episode, Clay reviews Jeff Bezos’ shareholder letters and shares his biggest takeaways. Jeff Bezos is an exceptional capital allocator who has delivered unprecedented returns to shareholders. Since Amazon’s IPO, the stock is up 152,400%. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 01:58 - How Jeff Bezos thought about building Amazon.com in the early days. 04:51 - Why Bezos believed that focusing on the customer is in the best interest of shareholders. 15:55 - Why Amazon’s business model was more capital efficient than physical retail stores. 23:26 - Why Bezos is more terrified of his customers than his competition. 25:17 - Why Bezos largely ignored Amazon’s volatile stock price movements. 36:55 - Why Bezos encouraged an ownership mindset. 57:12 - The three business units that created the majority of shareholder value for Amazon shareholders. 59:30 - Our favorite framework from Jeff Bezos. And so much more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Related Episode: TIP506: How Jeff Bezos Built Amazon | YouTube video. Follow Clay on Twitter. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: River Toyota CI Financial Sun Life AFR The Bitcoin Way Industrious Briggs & Riley Range Rover Meyka iFlex Stretch Studios Vacasa Public Simon & Schuster USPS American Express Shopify HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.0	Hey everybody, welcome to the investors podcast.
0:05.0	I'm your host Clay Fink.
0:07.0	On today's episode, I'll be reviewing Jeff Bezos's shareholder letters
0:11.0	who's just a master capital allocator, and has delivered unprecedented
0:15.3	value to shareholders during his tenure as CEO of Amazon.
0:19.3	I thoroughly enjoyed going through these letters and better understanding the exceptional capital
0:23.6	allocation decisions that Jeff Bezos was making during his tenure as CEO of
0:28.0	Amazon from 1994 through 2021. I think you're really going to enjoy this episode. At the end of this
0:34.6	episode I'll also play a couple of clips that I thought were quite
0:37.8	interesting and going through some of Basis's early interviews in the early days of
0:42.0	Amazon. With that let's get right to it.
0:44.5	Celebrating 10 years and more than 150 million downloads. You are listening to the Investors Podcast Network.
0:55.0	Since 2014, we studied the financial markets and read the books that influence self-made
1:00.1	billionaires the most.
1:01.7	We keep you informed and prepared for the unexpected. Now for your
1:05.7	host Clay Fink. So Amazon.com was founded on July 5th, 1994 and the company went public on May 15th, 1997.
1:25.0	So the 1997 shareholder letter is the first letter that was available to the public.
1:30.0	If you're interested in learning about the whole story of how Bazel started Amazon,
1:34.4	I actually did an episode on how the company developed and how I got started over time.
1:38.7	That episode covered Brad Stone's book, The Everything Store, which is covered back on episode 506. I think a good place to start this
1:46.7	episode is simply by reading the 1997 letter. It's amazing looking back at just how clear Bezos was thinking with where
	...

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