Can Amazon Keep Defying Warren Buffett’s Mantra?

amazon

Amazon has beaten or knocked out nearly every heavyweight retail contender. 

Those still in the bookstore business (R.I.P. Borders) keep getting uppercuts to the chin. Investors in Amazon’s stock have made a fortune.  In the past 10 years, shareholders have gained nearly 720 percent.

Yet the company stands on wobbly legs.  That might sound crazy. 

Amazon sells a lot of stuff.  But it barely makes money.

Image courtesy of pixabay.com

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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1 Response

  1. Shane says:

    Wow. Great article. I just did a quick calculation: If we look at the Preston Pysh-reported formula of P/E * P/BV < 22.5 = company that *might* be worth a look, Amazon's numbers show the following: 793 * 13.23 = 10,491. Remarkable.

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