1/ "If you focus on two cents more profit per quarter, then you get investors who’d focus on that. But if you say long-term cash flow is how we measure the business, pretty soon you get investors who are willing to invest on that basis." Tom Alberg https://www.acquired.fm/episodes/episode-28-the-amazon-ipo-with-original-amazon-board-member-tom-alberg …
2/ Interviewer: "At the end of 1997, Amazon wraps up the year with 148M in revenue, up from 16 the year before. Incredible growth. At the end of 1997 is Jeff publishes his first annual letter to shareholders.
Alberg: "One of the key people in those early days was Joy Covey."
3/ Joy Covey: "Most companies depart from their best long-term business thinking in order to please Wall Street. And they often do things that are not in the best long-term interest of the business because they’re under pressure from investors for short-term results."
4/ Joy Covey: "We asked ourselves: 'Who are the companies that are truly able to make decisions that are in the best long-term interests of shareholders?' We felt that was the way to create the best possible company in the long run."
5/ Joy Covey "I learned that it does no good to tell people what they want to hear in order to get them to buy the stock. So I have repeated again and again that this is for the long term and we are building an enduring company. I don't think you can get more clear than that."
6/ When an analyst asked Covey what Amazon won't sell: "Cement. It costs too much to ship."
"I thought, Wouldn't it be great to build one of those new business models like Microsoft or Dell?"
"Joy Covey was more substance over optics. She was a long-term thinker.” Jeff Bezos
7/ I decided to write this thread while re-listening to this podcast yesterday. Mauboussin and O’Shaughnessy were talking about investor quality as a competitive advantage of someone like Buffett or Klarman. Benchmark and Sequoia have the advantage in VC. http://investorfieldguide.com/mauboussin/
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