In this interview with Andy Serwer, Warren Buffett reflects on his admiration for Jeff Bezos and his remarkable execution of Amazon’s vision, acknowledging that he didn’t foresee its success. He admits to missing investment opportunities like Microsoft but doesn’t regret them as they were outside his circle of competence. Instead, … Read More
Jeff Bezos: The Metrics Trap: Why Your Numbers Could Be Lying
During his recent interview with Lex Fridman, Jeff Bezos discussed the importance of critically examining metrics and not blindly relying on them as accurate reflections of reality. Businesses rely on metrics as proxies for things like customer happiness, efficiency, etc. However, these metrics can become outdated or inaccurate over time. … Read More
Jeff Bezos: Investors Should Focus On Free Cash Flow, Not Earnings
In Jeff Bezos’ 2004 Annual Shareholder Letter, he provided a great lesson for investors on the importance of focusing on free cash flow, as opposed to earnings. Here’s an excerpt from that letter: Our ultimate financial measure, and the one we most want to drive over the long-term, is free … Read More