I bought More Amazon Again Today

Hey everyone,

I decided to make this entire post and video free. If you enjoy these timely updates and want access to the paid-only deep dives, I’d love it if you start a paid subscription

Here’s a video explaining why Amazon is by far the largest position in the $10k to $1 million portfolio

I’ll summarize the video quickly in case you don’t have time to watch it all right now. I encourage you to come back and watch it when you have time!

First, here’s a look at the entire portfolio. With the growth sell-off, I have consolidated down to fewer positions (got rid of dividend companies because I feel there is a much better opportunity in high-quality “growth companies).

As I write this email, my M1 account is auto buying $1,500 more Amazon. I apologize for not getting this out ahead of time, but I’m seriously not concerned about moving the stock price of one of the largest, most traded companies in the world.

I covered more notes from the earnings call in the video, but here is one question at the end of the call that speaks to Amazon’s advertising business (growing 25% YoY) and AWS backlog (growing 68% yoy at an $89 billion run rate). In my opinion, these two segments alone make Amazon a pretty compelling buy.

Finally, I went through some Fastgraphs on Amazon. I shared more in the video, but if we look at Amazon’s expected Operating Cashflow growth over the next few years and put a P/OCF ratio of 14.28 on it (the last time it traded that low was coming out of the GFC in 09) then we get a 16% annualized rate of return through 12/31/2024…. works for me!

That’s it for today’s summary. The video has more details but I covered the key points/screenshots above.

Would love your feedback on this style of email/video combo. Is it helpful?

Thanks!