Amazon: My Hypothetical One-Stock Portfolio

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Dear Diary,

Today, I embarked on a thought experiment that has left me feeling both enlightened and slightly panicked. What if-just imagine this for a moment-I could only buy and hold one stock? One measly stock to carry me through the financial ups and downs of life. The idea is absurd, really. I mean, who does that? And yet, here I am, obsessing over it like it’s my job (which, technically, it kind of is).

Units of Time Spent Contemplating This Scenario: 3. Glasses of Wine Consumed During Said Contemplation: 2. Number of Stocks Seriously Considered: 12. Final Decision: Amazon (AMZN). Yes, Amazon. Here’s why.

What Amazon Really Is

Let’s start with the obvious: Amazon is the king of e-commerce in North America, gobbling up nearly 40% of the market’s total revenue. Impressive, right? But wait, there’s more. It also runs Amazon Web Services (AWS), which, while contributing a relatively small slice of revenue, accounts for nearly 60% of the company’s operating profits. So, it’s not just an online shop-it’s a profit-generating machine with tentacles everywhere.

But here’s where it gets delightfully chaotic: Amazon doesn’t stop at selling books and blenders. Oh no. It owns Whole Foods (groceries!), IMDb and Twitch (entertainment!), Ring (smart doorbells!), and PillPack (prescriptions!). It even monetizes its platform by letting sellers pay for better placement, creating a booming advertising business that raked in $15.7 billion last quarter alone. Honestly, the whole thing feels like a capitalist octopus, but one that somehow manages to keep all its limbs moving in sync.

You see, most companies focus on doing one or two things exceptionally well. Amazon, on the other hand, seems to have decided, “Why not do everything?” And strangely, it works. Each line of business feeds into another, creating a self-sustaining ecosystem that pulls in consumers and corporations alike. It’s complicated, yes, but Amazon handles it with the grace of someone juggling flaming swords while riding a unicycle.

Still, as impressive as all this is, it’s not the only reason I’d stake my financial future on Amazon.

Jeff Bezos Started It

Ah, the founder effect. It’s a tricky thing, isn’t it? Companies built by larger-than-life leaders can be brilliant investments-or disasters waiting to happen. Take General Electric, for example. Once Jack Welch stepped down, the company never quite recovered. Or consider Apple under Steve Jobs versus Tim Cook. While Cook has done admirably, let’s be honest: he’s no Jobs. The magic dims a bit without the original wizard at the helm.

And yet, Amazon seems different. Jeff Bezos may have handed over the reins to Andy Jassy, but his philosophy lives on. Bezos famously championed a culture of experimentation, reminding shareholders in his 2016 letter that “most large organizations embrace the idea of invention, but are not willing to suffer the string of failed experiments necessary to get there.”

Amazon embraced failure like an old friend. Remember the Fire phone? A flop. But AWS? A triumph. Amazon Prime? A game-changer. Bezos’ willingness to fail fast and often laid the groundwork for some of the company’s biggest successes. And now, Jassy is carrying the torch, blending his own leadership style with Bezos’ legacy. As he put it, “At Amazon, you are not just empowered to speak up if you think we’re doing something wrong-you’re expected to do so, regardless of level.”

It’s working. Amazon is bigger than ever. Which brings me back to my hypothetical one-stock portfolio. If I’m going to bet on a company, I want one that’s built to adapt, evolve, and thrive-even when the road gets bumpy.

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The Power of Innovation

Now, let’s talk about something practical: profits. A healthy corporate culture is lovely, but it doesn’t pay the bills. At the end of the day, a company must sell its products or services profitably to survive. Amazon passes this test with flying colors. With a $2.5 trillion market cap, it generates over $600 billion in annual revenue and turns about $60 billion of that into net income. Meanwhile, its long-term debt sits at a manageable $80 billion. Not bad for a company that started as an online bookstore.

But here’s the kicker: companies that foster innovation tend to outlast those that play it safe. Look at Alphabet versus post-Welch GE. Or Netflix versus Blockbuster. Poor Blockbuster had the chance to buy Netflix for a mere $50 million back in 2000. Instead, it dismissed the idea because, at the time, Netflix was still mailing DVDs. Can you imagine? A world where Blockbuster rules streaming? Me neither.

And yet, this story perfectly illustrates my point. Even if Blockbuster didn’t want Netflix, it could have launched its own streaming service. But it didn’t. Why? Because it lacked the courage to experiment. Netflix, on the other hand, took the leap, knowing full well it might fail. And look where it is now.

So, for my money, I’ll bet on a company that understands the value of experimentation-and has the financial muscle to weather the occasional misstep. Amazon checks all the boxes: a culture of innovation, a track record of success, and the resources to keep swinging for the fences.

Final Thoughts: Units of Confidence in Amazon: High. Units of Regret for Not Buying More Shares Earlier: Also High. 😊

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2025-08-19 13:10