Adam Khoo
2022-09-28
Looks like, indeed, all package carriers are losing market share to Amazon

As of year-end 2021 Amazon now has more market share by volume, surpassing FedEx.
Amazon spent the last 2-3 billion of huge growth CAPEX to build a super wide moat to be a leader in:

1) 🛒 E-commerce … already #1
2) 💻 Advertising … just surpassed YouTube
3) 📦 Logistics .. just surpasses FedEx… and kills Shopify in the process with the “ buy with prime “ service
4) ☁️ Cloud .. already #1
5) 📼 PRIME video streaming …yet to surpass Netflix

They were quietly building this empire to rule the world. Once they are done with their CapEx spending.

Free cash flow will be huge! Stock will 3-5X in my opinion.

Mr. Market has been punishing AMZN, META, and ADBE for spending billions to widen their moat because in the short term it reduces free cash flow and profits … Mr. Market is very short-term focused.

If you look 3-10 years out, their actions today will make them more dominant than ever before.

By making them so cheap, Mr. Market is unknowingly doing us a favor.. allowing us to acquire a bigger and bigger stake at higher discounts.

 This is why I love Mr market … his short-sightedness and manic-depressive nature give me the opportunity of a lifetime
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Remotecam
    2022-09-29
    Remotecam
    Long term value investing in great companies will always result in a win. Accumulate while price is down. thanks for sharing.
  • Derrickola
    2022-09-29
    Derrickola
    sensei good read!
  • Ericdao
    2022-09-29
    Ericdao
    Cheap can go cheaper. Value or not, when bear come, nobody escape. Accumulate at the right moment is the key, close at the right moment is the way. Stay safe. History can change
    • Ericdao: 
      FYI, I'm buying for short term as of now.
  • XiDon
    2022-10-02
    XiDon
    Thanks for sharing
  • melson
    2022-10-02
    melson
    the amazing Amazon, then comes the milking govt and its surgical team.

    your books inspired me a lot when i was young. 8 years later, i achieved fire. i loved your analogy where you said a person picks up a pebble on the beach and throws it into the sea and then another, and without knowing it the person picked up a gold nugget and also threw it in the sea. great to see you here and love to hear your insights.

  • highhand
    2022-09-30
    highhand
    You got to be right Adam! I'm following you! [LOL]
    • highhand: 
      Just joking. Of course, you are right.
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