American Consequences - August 2017


fits... They never advertised price. They just advertised ‘This fits. You’ll enjoy it.’” As Lynch said in One Up on Wall Street , a little bit of research and some basic math is all you need to invest well... If you’re prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won’t get bored. The last component was time. You want to invest for the long run: “Time is on your side when you own shares of superior companies,” he wrote. Lately, I’ve been seeing an investment Lynch would love... Its total domination is clear: Every day of the week (even Saturdays and Sundays), the postman stops his small Express Mail truck nearby my house. Out he gets, every day, his arms overloaded with cardboard boxes. The familiar upturned arrow is stamped on all the deliveries.

CORNERING THE MARKET IN ‘CRAZY’ IDEAS Jeff Bezos, founder and CEO of Amazon, runs his business for the long term. He doesn’t seem to care the slightest bit about quarterly or even annual earnings. That’s an advantage. If you’re familiar with the online-retail colossus, look around your neighborhood... Those brown boxes with a smile that you see on all your neighbors’ doorsteps are Amazon deliveries of books, household goods, clothes, electronics, and just about everything else. For many folks, Amazon is their first stop for nearly anything they want to buy. And by many, we mean millions of people have swapped out most of their retail shopping for Amazon. Even beyond basic Internet retailing... Amazon offers a plethora of Web-based services. It can store your photos or host your website on its cloud. It can deliver items

Today, Peter Lynch would definitely pay attention to

Amazon (AMZN). It doesn’t take much

basic math to understand just how wonderful this business is. And if you’ve got a long-term view – by which I mean three to five years – this is as close to a guarantee for investing success that you can get .

58 | August 2017

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