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Alrighty uh before we get into this let me say a few words okay um what you’re watching is a video put together by a man who’s been uh tore up in the market over the past several months but what you’re watching in front of you right now is a man who is so far on top of the youtube game right now i can’t even explain it there’s no one touching these sorts of of
Concepts ideas uh constructs and putting together videos like this a lot of folks are obviously covering the market in the news and that that’s cool and you know financials and those sorts of things but this sort of video you you got to be on another freaking level to do something like this and put something like this together and piece all this stuff together so
Folks can understand um the real power in um executing and and buying real companies with real revenue with real revenue growth with real exciting opportunities and understanding the concept of not getting scared out of the market and staying with your conviction essentially okay and uh so i just had to give myself a little flowers there i think this is is probably
The peak year for me in terms of youtube i don’t know if there will ever be a year where i’m this on top of the game or i care this much about uh you know kind of what’s going on here essentially okay so here we are in this moment um we have a man named bob now bob is this is 19.99 and bob hears about how all these people are making money in uh tech stocks so
Bob’s like hmm i don’t know that much about stocks but you know i got a little business and um you know i’m hearing everybody’s making money in tech stocks i think i’m gonna start a you know uh getting into these tech stocks right and so bob goes ahead and he starts looking at companies right and one of the biggest companies at that time is this company amazon.com
And he says okay i want to look into amazon you know there’s all these other companies that are being valued on eyeballs and like they might have revenue someday but you know we don’t even know he’s like i want if i’m gonna buy a company i want to buy a company that actually has real revenues not just a story but like actual real revenues an actual real strong
Revenue growth right and so it comes across amazon and he’s looking in this company he reads their their 1998 uh report essentially right and he sees this company grew their their revenue from 148 million dollars in 1997 to 6 hundred and ten million dollars in 1998 essentially right a 313 percent increase he sees our customers are growing great from 1.5 mil to 6.2
Mil and uh he’s looking at this company he’s like this is freaking amazing i love this company and so bob starts to get fomo massively and he’s like you know what this company’s growing so fast this company’s gonna make me rich i’m gonna go ahead and bob makes an extremely dumb questionable decision and bob goes all in amazon stock at the peak of its value in 1999
In november 1999 he puts entire net worth in the stock horrible decision anybody that knows anything about the stock market or just finances in general does you don’t go all in a stock horrible decision right so bob puts his ten thousand dollars in he gets his shares at you know around 83 bucks a piece and he gets 120 shares and now he has no money essentially now
He makes an extra like 125 dollars a week roughly so he has like 500 a month and the next thing you know bob’s amazon stock starts going down and next thing you know in december it’s you know he it’s lower so he’s like okay let me buy a little more shares so i got an extra 500 bucks a month you know to put towards stock so i’m gonna put 500 bucks i gotta bought it
At 76 right and he buys another 6.5 shares there right now also next thing you know bob’s stock goes down more and bob’s like oh my gosh i might have i might have really screwed up i don’t know anything about value in stocks i you know i don’t even really mess with stocks i put my entire net worth in the stock what is going on here so bob’s faced with a very very
Difficult decision bob is in a situation here where he sees a stock price declining he sees an entire net worth declining and he says dang man what’s going on with this amazon company i’m either gonna sell out of this company i’m gonna hold it or i’m gonna buy more shares and so next thing you know the next annual report comes out now that the year is closed out
Right and he sees a recap he sees an amazon sales group from 610 million dollars in 1998 to 1.64 billion dollars now the increase of growth rate slowed substantially from a 300 plus percent growth rate to 169 percent and wall street might be freaking out about that he’s not really scared he at the end of the day sees they’re adding massive amounts of new customers
They’re in they’re not making money they’re losing money on the bottom line but at the end of the day he sees this revenue beasting he says i’m adding a ton more customers he understands that this industry of e-commerce this concept and idea that’s being played out here is gonna be a huge thing and much much bigger in the future and he’s like this company’s already
Doing 1.64 billion dollars of revenue measure what they’ll be doing in 10 years from now 20 years from now and so he says you know what i’m not selling out of this stock you know screw it i know everybody’s laughing at me right now i’m losing money on this but you know what i’m gonna buy this stock and i’m gonna buy the dip and i’m gonna continue to buy the dip
Over the next you know many many months okay and so next thing he knows he buys these three dips on all these three months here fifteen hundred dollars worth right 500 times you know uh the three right fifteen hundred dollars he gets at an average price of 67 so he has another 22.4 shares of ownership he adds another 500 here in this month when it’s at 54.9.3
Another 500 here at forty eight dollars right uh that’s another 10.4 shares uh here there’s four different months there and he gets those shares at an average price of 37 that’s two thousand dollars right five hundred times four it’s fifty four more shares in votership for him he buys here another five hundred dollars worth he has another 17.2 shares here as the
Stock continues to get devastating he’s just you know getting decimated and everybody’s laughing and i’m like bob you you are the worst investor ever bob like what did you do you put your entire net worth at peak and you keep buying the stock that just continues to go down like what are you thinking but as the months tick on he sees the numbers coming out and the
Growth is amazing and everything’s amazing and he’s looking at the business fundamental he’s like they you know the stock price keeps going down but the business is amazing so he buys more shares another 21.7 shares there then oh you know the stocks just continues to get devastated over this 17-month span he puts 500 each month which is 8 500 over the course that
Month he buys at an average price at ten dollars because stock is above ten dollars sometimes it’s way below ten dollars sometimes gets another 850 shares now bob has less than 25 000 of his own money invest in this stock over a 30 month span right he now owns one thousand one hundred and twelve shares of this amazon company right and bob decides that after that
30 months fan he says you know what i’m gonna hold these shares i’m going to watch the company’s progress over the coming years but i’m never gonna buy another share of amazon for the rest of my life he says that and he sticks with that and he sees the progress over the coming years and the progress is amazing and the company continues to grow and grow and grow
Now he decides to never buy any more shares he just holds his 112 shares of ownership over the coming years right no bob he made some very very questionable decisions he goes all in and when this the the the tech bubble is at peak fomo in november 1999 right all in like silly um and he also makes a questionable decision to never buy another amazon share after
Essentially you know uh 2002 and so he’s he makes some very very questionable decisions but that’s bob and bob is what he is right but what’s bob’s 1112 shares worth today right well bob’s 1112 shares are now valued at two thousand nine hundred and ten dollars a piece and those shares are now worth 3.235 million dollars all from investing less than 25 000 and he
Put his entire net worth at the worst price possible in 1999 the worst price possible and he never bought any more shares which if he had just kept buying amazon stock in 2003 in 2004 and 2005 and 2006 seven eight nine ten if you would have just kept buying bob would have been bob would have had tens of millions of dollars in his account probably more than that
And but at the end of the day bob is still looking pretty because you know what he kept investing in other stocks and other companies that were growing over the coming years in an 03 and 04 and he just kept buying the dip and he took advantage of those deals right out there right and this story with bob you know this is a story that is going to be true in in this
Crash we’re going through right now where there are certain companies with real revenues that are going to conti that have you know 10 20 years plus of growth in front of them that are going to grow into giant corporations that are going to keep the pedal to the metal and continue to innovate and innovate right and there’ll be some of these companies that will
Never come back to their previous values that they were valued at at the peak of the market in 2021 right in january february because some of those companies were just you know like pie in the sky you know opportunities that were just like impossible business models to pull off and they weren’t doing real revenues and people were investing in those companies when
They weren’t even doing real revenues right and there’ll be other ones that are doing real revenue news you know real revenues in the stock market are minimum 100 million dollars but usually you know at least a few hundred million dollars and those companies that continue to grow and innovate are going to be the next giants of the stock market right now this i
Think is is this is so interesting for a couple a couple of reasons here what i’m showing you here is a 1998 uh you know shareholder letter from jeff bezos says i’m incredibly incredibly proud of everyone at amazon.com for their tireless efforts to deliver what has become the standard setting amazon.com class customer experience while simultaneously handling such
Extraordinary growth rates if any of you shareholders would like to thank this incredible worldwide team of amazonians please feel free to send us an email at jeff amazon.com you know stuff like that you know just that just wows me like that just wows me like i’m sure if i was around in 99 i would have been jacked up about that and probably doing videos about
That because it’s just it’s just beautiful it’s just a beautiful time right in 1999 we continued to benefit from a business model that is inherently capital efficient we don’t need to build physical stores or stock those stores with inventory in our centralized distribution model has allowed us to build a business with over two billion dollars in annualized sales
But requiring just 220 million dollars in inventory this is amazing okay wait this isn’t even the most amazing part okay i’m just getting jacked up i just got to talk about this for a moment okay amazon stock fell 90 over 90 percent peak to trough over 90 percent it’s ridiculous okay over 90 this company fell that’s how irrational the stock market can get this
Incredible company with this this visionary ceo leading this company that’s growing at these insane growth rates with these insane amount of new customers with an industry that was just going to get massively bigger over the coming decades fell 90 percent peak to trough that is how ridiculous the stock market can be in given times right and there are stocks right
Now in this market that are down 50 60 70 80 90 percent and some of those stocks will never come back because they never had it in the first place they don’t have the type of management team to get them out of that right and there will be certain other companies that will become the giants of industries and make their businesses 10x and 20x and 50x and 100x but a
Company like this that had these incredible ceo in this incredible growth rates fell 90 in the tech bubble days right how insane is that that’s how massive the market can miss value companies in the short term right look at this here look at this the the this is this is mind-blowing right what do you own it says jeff bezos at a recent event at stanford university
Campus a young woman came to the microphone and asked me a great question she said i have 100 shares of amazon.com what do i own and he explains essentially what she owned she owned a piece of the leading e-commerce company and went into detail on that right now that woman bought 100 shares probably right around the peak fomo cycle of uh the tech bubble right and
She probably got kelly up into it because everybody was doing it at that time and it was like oh tech stocks for the win you know we’re gonna make so much money and she probably bought her shares at some point in 1999 and she probably was going down and down and down on those shares and she’s like what do i do right and i gotta think to myself i wonder what what
She did i wonder if she sold those hundred shares i wonder if she held those hundred shares or i wonder if she bought the damn i i really do i think about that and i wish i could we could find out what whatever happened to that lady and whatever happened you know that that young young woman as jeff bezos put it wonder whatever happened to her and a real marriage
She became kathy wood no i’m just kidding but i know and all seriousness i wonder what happened to her and i wonder what she did right because those were the three scenarios because she she ended up getting destroyed on amazon stock right and i just wonder if she selled sold out on that massive downfall over that two-year span or if she held through strong during
That time frame right or if she actually bought the dip because if she bought the dip my gosh did she make a lot of money if she held my gosh did she make a lot of money but if she sold she probably still is thinking about the time she sold amazon rather than buy the stock on that massive crash she she’s like yeah yeah i sold 100 amazon shares and that would be
Worth like you know uh hundreds of thousands of dollars today right 100 shares of amazon but you know almost 300k or some crazy number gosh man you know that that’s the type of stuff i think about i’m like whatever happened to her and i wonder what she did now if conventional wisdom tells us what she did she more than likely sold right you don’t get amazon stock
To have fallen ninety percent in that crash without massive amounts of people just dumping their shares left and right and it’s sad to think about because there’s is probably a 90 probability that she cashed her 100 shares of amazon during that right rather than buy another 100 shares and another 100 shares and another 100 shares and another 100 shares she more than
Likely sold her 100 shares probably at a big loss and isn’t that a crying shame isn’t that a shame and that’s more than likely what happened right when she should have just been buying the dip i love this here jeff bezos puts in that shareholder letter it’s all about the long term in 1997 letter to shareholders hour first we detailed our long investment approach
Because we continue to add many new shareholders for certainly during that time right we made this letter immediately after this year i invite you to please read this section entitled it’s all about the long term as the best way i know to help make sure we’re the kind of company you want to be invested in as we wrote there we don’t claim it’s the right philosophy we
Just claim it’s ours right and obviously that’s always the right philosophy when running a business right by the way get some free stocks from moomoo while they still got that exclusive deal check out pin comment make sure to subscribe the channel okay running a business for the long term is always the best decision and what we can learn from this and the the thing
With with amazon is the same exact thing could be applied for so many of the the massive tech companies that had huge growth during that time in not just huge growth but you know oh if we think about the companies that um you know really had it when it comes to their management teams their philosophies right i think that’s the most important thing a lot of people
During the tech bubble lost a fortune and the reason i lost a fortune is because they got caught up into not really revenue growth and not really like who’s doing substantial revenues but they got caught up into a lot of these companies that were doing minuscule revenues and a lot of companies that were were basically valued by hundreds of millions of dollars or
Billions of dollars based upon how many people were clicking on a website right how many people were clicking on a website like that’s just a ridiculous thing but that’s how they were valuing companies at that time right when all along they should have been looking at the companies that had meaningful revenues 100 mill plus a year in revenue had incredible growth
Rates and had these sorts of opportunities over 5 10 15 year span right and the same could be said for not just microsoft but it could have been said for apple and it could have been said for oracle and microsoft and a ton of those those companies that you know where high flyers during that day you know even if you were buying at peak fomo in 1999 as long as you
Were also buying the dip in 2000 and 2001 in 2003 in 2002 and um as these companies obviously continue to grow their business is much bigger you made a lot of money right and there were a lot of other companies that ended up getting acquired for premium prices by some of the big companies but at the end of the day a lot of it’s going to come down to picking the
Right companies and being in the the right the right growth companies over the future right and so that’s why in this last essentially right we had the closest thing to tech bubble was january 2021 and in that time period there’s a lot of folks that were getting into some really questionable business models right that didn’t really have meaningful revenues and you
Know you it was like maybe someday we’re gonna have meaningful revenues a lot of people got caught up into those right now all these stocks have fallen the ones that have meaningful revenues doing nine figures plus of revenue with great future growth prospects and great management teams in these companies those ones have fallen as well as those ones that are just
You know where the meme stocks or the hope that maybe someday they could do something big right they all got killed it’s like amazon got killed along with all the other great tech companies at that time that had extraordinary growth rates extraordinary management teams and uh we’re doing big numbers right amazon got pulled down with all the other let’s call it
Trash ones right and it’s the same exact thing that’s played out recently where you’re looking at massive lists of stocks down 60 to 90 percent and some of these business models are truly have it like they’re doing nine figures plus of revenue and they’ve got you know a decade plus of growth in front of them with real management teams that are going to lead these
Companies to become much bigger corporations in the future right but in this market when it pushes all these stocks down it pushes all them down to the abyss just like amazon and every other big tech stock got pushed to the abyss during that time right and with these sorts of companies with these sorts of opportunities and these management teams in front of it
You can’t do anything other then buy and buy and buy the dip and i know it’s hard when everything’s going down and um you know you’ve got everybody laughing at you but it’s the right decision and it’s the one that when you look out five years from now 10 years from now it’s the one you’ll be patting yourself on the back and telling yourself thank you for doing
That and um you know you could either be the bob that bought the dip or you could be the bob that that sold off right bob that sold off he didn’t end up doing anything bob that didn’t sell off got stupid rich that’s what we do know so anyways guys hope you enjoyed this as always much love and have a great day
Transcribed from video
SOLD IT ALL AFTER GOING ALL IN By Financial Education
