Jeff Bezos 2020 Letter to shareholders. The best one so far.
Amazon went public at a stock price of $1.5.
The latest stock price at $3380. That’s an astonishing cagr of 38% for over 24 years. Total wealth creation of 1.6 Trillion $.
In the meantime, the number of employees has gone from 150 to 13 lakhs
“In 1997, we hadn’t invented Prime, Marketplace, Alexa, or AWS. They weren’t even ideas then, and none was preordained. We took a great risk with each one and put sweat and ingenuity into each one.” In the startup stages, Bet is almost always on the jockey (entrepreneur)
“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 a positive-sum game after all.
“If you want to be successful in business (in life, actually), you have to create more than you consume. Your goal should be to create value for everyone you interact with.” True to its words, Amazon created $ 301B for all its stakeholders in 2020.
On being called employees as “desperate souls and treated as robots” They’re sophisticated and thoughtful people who have options for where to work. When we survey fulfillment center employees, 94% say they would recommend Amazon to a friend as a place to work.
Next goal: ‘Earth’s Best Employer and Earth’s Safest Place to Work’ By continuing to lead on wages (was the 1st one behind the $15 minimum wage), on benefits, on upskilling opportunities, and in other ways that we will figure out over time. They will invent new ways.
Climate change talks. Obviously, it’s real. “Amazon is making progress toward our own goal of 100% renewable energy by 2025, five years ahead of our initial 2030 target.” About great companies: they always deliver ahead of time
Targetting net-zero carbon emissions by 2040 The biggest roadblock: transportation Invested $1B+ in Rivian (EV startup which will deliver 1 lakh vehicles to amazon by 2030) Partnered with Mahindra in India & Mercedes Benz in EU
Over $2B investments in visionary cos.
The best lines from the letter –
In what ways does the world pull at you in an attempt to make you normal? How much work does it take to maintain your distinctiveness? To keep alive the thing or things that make you special?
“To all of you: be kind, be original, create more than you consume, and never, never, never let the universe smooth you into your surroundings. It remains Day 1.”
Jeff Bezos signs off as CEO of Amazon for the last time. What a journey.
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