How is it that firms like Amazon can not make a profit for close to 15 years and investors still put money into them? Is the success value even close to what they lost? - Seedly
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Anonymous

Asked on 03 Apr 2019

How is it that firms like Amazon can not make a profit for close to 15 years and investors still put money into them? Is the success value even close to what they lost?

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Pascal S
Pascal S, MBA Graduate at Singapore Management University
Level 6. Master
Answered on 03 Mar 2020

Hi Anon,

I would usually have a really long answer but have a train to catch soon.

My abridged personal view on investing in a company:

  • Investing in the founder and his abilities, one of which is to attract great talents;

  • Being thesis-driven, in the sense that, believing that certain things will never change while other things would;

  • The first two points will take years to build in terms of investment acumen, start early.

Hope it helps

Cheers,

Pascal​​​

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Ablah Kethu
Ablah Kethu
Level 3. Wonderkid
Answered on 03 May 2019

I believe more than profits it is the established market in the industry which definitely won't give up on things and continue growing in every possible way. I think this might be a grabbing thing for the investors to expect the profit at one point.

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