Can $AMZN make money? Bezos says yes, they have profitable lines that subsidize reinvestment
The frame of Wall Street is short term
The frame of true reinvestment is long term
The latter is rare. Most just do buybacks because they are out of ideas or can’t hire/manage/ship
Hedge funds/equity managers have short term quarterly goals. But 84% of stocks are held by multi family office, endowments, pensions, sovereign wealth, all of whom typically are long term oriented (20+ year horizon)
Incentive mismatch on Wall Street
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