08/06/2019

Jeff Bezos - Stop looking at our stock price this quater

Jeff Bezos - "Stop looking at our stock price this quarter".
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During raya, I stumbled upon an interview with Jeff Bezos. I felt it was one of the best interviews I’ve seem in a long time so thought I share this with you guys. Some lessons from the wealthiest person in the world today :
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1. Amazon didnt make money until after 9 years in business. Today, after more than 25 years, its one the most valuable companies in the world, adn reached USD1Tril market cap. And Jeff Bezos, became the wealthiest person in the world.
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2.Amazon keep reinvesting its profits back inits business so that it has larger competitive advantage. Today, they are one of the most profitbale companies in the world.
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3. He said he had plenty of good luck in the last 25 years in business.
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4. In one quarter, their shares went up by 30% in just 90 days. Bezos’s response? “The result of this quarter, is coming from the cake we bake 3 years ago. And today, we are baking and preparing for another great quarter but in year 2022. “
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5. Bobby Axelrod n Bezos - "While We keep an eye for this quarter but the other eye must look at next year, or 5 years ahead. The great never sacrifice the IMPORTANT, for what is URGENT but not necessarily important. "
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The insights for me and how do I apply this in my life, are as per the following  :
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1. Many people often look for short term results, and not willing to loose 5-10 years first. Bezos was willing to sacrifice 5-10 years so that he gains a massive advantage that will now give him a 50 year advantage. I was riding on a scooter, for the first 7 years of investing, and had over RM5k monthly passive income. I reinvested all my profits to buy more. Even today.
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2. Many people get comfortable. 10 years ago most retailers like Macy, Best Buy and even Walmart scoffed at Amazon’s decision to  sell anything and everything. Today, they are either no longer growing at their normal pace or dying. They fail to reinvent when they had advantage 10 years ago.
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3.People think Bezos got lucky. But he is in this business for 25 years, and sure while some element of luck exists, he was prepare to ride the luck when it came. He was IN THE GAME to benefit from that luck. Its the same with properties too. People often say we got lucky because of property bull runs, but they dont realized that a property bull run, can be created, and predictably engineered. We are in the game and if we dont get lucky, we have RM3 to RM5Mil. But if we are lucky,  we would end up with RM8 to RM10Mil. Unlucky means RM3Mil, and lucky means we make RM8Mil. Not bad kan?
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4. Many people make decisions to move jobs today largely because of the pay, instead of the skill that that job can offer. I went from RM600 per month in salaries to 5-figures before 29 years old as I prioritize learning first instead of pay. Prioritize LEARN, and then you’ll earn.
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5. Most people are happy to make RM50k to100k from property investments, and happy to cash that out today barely 5 years after investing. Which is sad considering its not difficult to make RM1Mil per property if they buy the right property and apply the right strategies.
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So guys, I attribute Bezos success ignore and make short term sacrifices to gain serious long term advantages. While many only look on what can they gain today and tomorrow or this quarter, he thinks 3-5-10 years ahead. Thanks to this thought process, he runs one the the most valuable companies in the world , and became the richest person as a result.
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So the next time you move jobs, or making a business decision, or making any investment decision, ask yourself this super important question —>  Is this decision will only be good for 1 quarter or 1 year, or is this decision will do well for the next 10 years ?
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p/s : Let me know whats your biggest learning from this post please (Y)

- CnP Faizul Ridzuan

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