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Jeff Bezos, Founder and CEO of Amazon (AMZN), is on the Forbes billionaires list for the second year in a row. His huge fortune of $ 112.6 billion was not won in a day. Bezos has created its wealth via Amazon and by investing in several other companies. With foresight and long-term strategies, Bezos has invested in start-up companies, which have been phenomenally successful. Some of the companies have also acquired the status of "unicorn".
Previous investments by Jeff Bezos
The substantial investments of Bezos could be called his "empire". He creates most of his investments through three channels:
- Amazon
- Nash Holdings, his private company
- Bezos Expeditions, its venture capital company
Among his particularly successful investments are Uber Technologies (UBER), Airbnb, the Washington Postand Twitter (TWTR).
Wyatt Investment Research announced that Jeff Bezos had invested $ 37 million in Uber Technologies. Currently, the company's market capitalization is $ 58.53 billion. He paid $ 15 million on Twitter in 2008 before listing. Today, Twitter's market capitalization is $ 33.05 billion. Notably, $ 112 million from Jeff Bezos' vault went to Airbnb in 2011. The market speculates that AirBnB could make its Wall Street debut this year.
What is particularly striking is the diversity of investments in Jeff Bezos' portfolio. He is interested in the technology, health and industry sectors. However, some of his investments are unconventional. Bezos Expeditions has interests in the arts and crafts, culinary arts, cloud computing, media, crafts, space technologies and real estate. Jeff Bezos has one of the most textured and daring portfolios.
Affinity for unconventional sectors
Blue Origin, an aerospace company, is one of Jeff Bezos' most unexpected investments. Like Elon Musk's Space X, the company makes rockets for space travel and satellite launches. Until now, Bezos has already invested more than a billion dollars in Blue Origin. Its goal is to make space travel affordable with inexpensive infrastructure. UBS expects the space travel market in space to be worth $ 20 billion over the next 10 years. The space market could disrupt the airline industry over long distances. UBS is optimistic about the space tourism segment.
Jeff Bezos believes in the future of the food industry. It has invested $ 200 million in Plenty, an agricultural technology company, in 2017. The company offers a vertical indoor growing facility that will revolutionize the way people consume fruits and vegetables. The company exploits the technology to produce up to 350 times more products than traditional agriculture. Agriculture 4.0 is a big deal. Bezos Expedition detects the huge potential. A report from ResearchAndMarkets.com said AgriTech's global market is expected to grow with a CAGR of 18% between 2019 and 2025.
What is Jeff Bezos looking for?
Another space where Jeff Bezos parked $ 100 million in 2016 is Grail, a startup specializing in cancer screening. According to Pitchbook data, Grail's private valuation is about $ 3.2 billion. The company's goal is to create a blood test that can detect cancer at an early stage. According to a new report by Grand View Research, the global cancer diagnostic market could reach a CAGR of 7% and reach $ 249.6 billion by 2026.
Jeff Bezos analyzes the long-term profit potential of a company and its added value in the market. He believes in investing in something that creates a positive difference in the lives of consumers. Its investment strategy has paid off in the past. Let's wait to see if his staggered investments have the same success.
Analysts are optimistic about Amazon
The stock of Amazon has increased more than 20% since the beginning of the year and closed at $ 1,807.84 on Monday. Shares gained momentum in September, following the de-escalation of trade negotiations. Analysts expect Amazon to post earnings growth of 17% in 2019. They are also optimistic about the company's long-term prospects due to the expansion of its logistics base.
Monday, Amazon action fell by 2%. A the Wall Street newspaper The report says the company has changed its secret algorithm to highlight the most profitable items. This month, Amazon will hold its second annual event to showcase its products. Last week, the Apple event (AAPL) sparked a positive sentiment, which is reflected in the stock price. We will have to see if Amazon can use the same magic for its next event. Apple stocks have not experienced any significant movement. However, the stock closed in the green at $ 219.80 on Monday.
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