Bezos' Dot-Com Crash Wisdom: Focus on Fundamentals, Not Stock Price
Amazon founder Jeff Bezos shared a valuable lesson from the company's dot-com crash in 2000. During this period, the stock price plummeted from $113 to around $6, causing many investors to lose confidence. However, Bezos remained optimistic and focused on building the business.
In a Q&A session last year, Bezos explained that despite the declining stock price, 'the number of customers [still] went up, every month. Our gross profits went up every month... Our losses as a percentage of sales went down every month.' He emphasized that this was a crucial period in Amazon's development and that he was focused on building a strong foundation for the company.
Bezos' comments highlight the importance of distinguishing between a company's underlying performance and its stock price. As he noted, 'the fundamentals of the business can be disconnected... the stock price is [only] an output that you actually have very little control over.'