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Bezos’ Law: Prices will be Lower, But what about for Income Investors?

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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.

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E.J. Smith - Your Survival Guy

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. His focus at all times is on preparing clients and readers for “Times Like These.” 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 Zildjians. He grew-up worshiping Neil Peart (RIP) 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 (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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