Sunday, 18 April 2021

2 SHARES OF AMAZON BOUGHT IN 1997 ARE NOW WORTH AN HOUSE AND MUCH MORE !!





In his annual letter to shareholders, Chairman of Amazon, Jeff Benzos shared a story of a couple who bought 2 shares of Amazon in 1997 and after a phenomenal rise of 172000% are now buying a house with selling a part of their shares. 
Note... only a part not full. 

The letter is attached herewith. 










The 2 shares grew to 24 shares after 3 splits. 


See the content of the letter. 



Jeff Benzos says 
"I am approached with similar stories all the time. I know people who've used their Amazon money for college, for emergencies, for houses, for vacations, to start their own business, for charity - and the list goes on. I'm proud of the wealth we've created for shareowners. It's significant, and it improves their lives."
He further said "Remember that stock prices are not about the past. They are a prediction of future cash flows discounted back to the present. The stock market anticipates."



See how much they have GROWN ALONG WITH THE COMPANY. 

The couple was NOT lured by short-term profits. 
They bought it with a clear focus on LONG TERM and most importantly HELD THE SAME 
The couple admit they were attracted to book profit but reminded themselves of the LONG TERM GOAL and held on
And now they are reaping the benefit

1 share is now worth $3,400
those 24 shares are now worth $81,600which in Indian Rupees is approx Rs.61 lakhs 
Yes you read it right

Want to know the cost?
To make it simple for you to understand......I will present in Indian Rupees
Amazon came out with an IPO of $18 per share
Indian Rupee was 42.15
So, the 2 shares cost the couple Rs.758
and now in 2021, the couple (if they sell) will get Rs.61,20,000



Those 2 shares of Amazon bought in 1997 at a cost of Rs.758 is now worth Rs.61,20,000 /- 

WHAT A FASCINATING TRUE COMPOUNDING STORY. 


Investment = Rs.758
Present Value = Rs.61,20,000

a compounded return of 53.5% 
A CAGR of 53%
Yes... a return of 53% year after year COMPOUNDED !!!
Business Insider says based on the closing price of the IPO day of Amazon, the returns are 172499% 

If I round off this investment to Rs.10,000 then it will look like this

Investment = 10,000 (in 1997)
Present Value = 8,07,38,000  (in 2021) 
Yes that 10,000 investment would be worth Rs.8 crore today 


Where the Real Estate Fans?


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PLEASE NOTE :

An individual stock can boom or bust and you need to keep a constant vigil.
I would still stick out my neck and say a combo of 
Term Insurance
20% Direct Stock
80% Equity Mutual funds 
is the best way to create Super Wealth over a long period of time.

DO NOT YIELD TO TEMPTATION. 
IF IT IS FOR YOUR KIDS EDUCATION GOAL......FOR GOD'S SAKE ....HOLD IT TILL THEN. 
DO NOT SELL 



Jeff Bezos in his final letter as Amazon CEO: ‘The world wants you to be typical. Don’t let it happen’
So don't be a typical Indian Investor and put money in FD and Gold
Be different, look at Equity mutual funds
So, DON'T RETIRE RICH
Become Financially Independent and Retire SUPER WEALTHY by following WEALTHY HABITS 

All the best
Srikanth Matrubai
Author - DON'T RETIRE RICH




You are strongly encouraged to consult your financial planner before taking any decision regarding this investment. The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH
Do read the book and give your valuable feedback and request you to post positive comments on the Amazon. https://amzn.to/3cHUM6M/ You can purchase the book on amazon and flipkart Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

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