I've read all of Jeff Bezos's 23 years of Amazon shareholder letters twice now.
It's an MBA of its own.
Here's what I learned about startups, entrepreneurship, investing and more:
It's an MBA of its own.
Here's what I learned about startups, entrepreneurship, investing and more:
Your customers are loyal to you right up until the second that someone else offers them a better service.
Listen to customers, but don't just listen
to customers also invent on their behalf.
to customers also invent on their behalf.
Here's Jeff Bezos on coming up with the Amazon Kindle:
We set ourselves the incredibly audacious goal of improving upon the physical book.
So don't be afraid to set big goals.
And remember that if you don't execute well, it will be done by someone else.
We set ourselves the incredibly audacious goal of improving upon the physical book.
So don't be afraid to set big goals.
And remember that if you don't execute well, it will be done by someone else.
Many of the problems you'll face will have no textbook solutions, and so you should happily invent new approaches.
Find the real root cause or causes of a problem — and do real root fixes.
So then, when you fix it, you’re not just fixing it for one customer. You’re fixing it for every customer.
So then, when you fix it, you’re not just fixing it for one customer. You’re fixing it for every customer.
Risk aversion limits innovation and long-term value creation.
The path to success isn't straight.
Success often comes through iteration: invent, launch, reinvent, relaunch, start over, rinse, repeat, again and again.
Remember that failure is part invention.
So better to fail early and iterate until you get it right.
Success often comes through iteration: invent, launch, reinvent, relaunch, start over, rinse, repeat, again and again.
Remember that failure is part invention.
So better to fail early and iterate until you get it right.
How to achieve outsized returns:
Outsized returns come from betting against conventional wisdom.
Given a ten percent chance of a one hundred times payoff, you should take that bet every time.
But you're still going to be wrong nine times out of ten.
Outsized returns come from betting against conventional wisdom.
Given a ten percent chance of a one hundred times payoff, you should take that bet every time.
But you're still going to be wrong nine times out of ten.
Big winners pay for many experiments.
1/2
Let's talk about baseball.
If you swing for the fences, you're going to strike out a lot, but you're also going to hit some home runs. It's as true for business as it is for baseball.
However, there's just one difference.
1/2
Let's talk about baseball.
If you swing for the fences, you're going to strike out a lot, but you're also going to hit some home runs. It's as true for business as it is for baseball.
However, there's just one difference.
2/2
Baseball has a truncated outcome
distribution: No matter how well you connect, the most you can get is 4.
In business, every once in a while, when you step up to the plate, you can score one thousand runs.
This long-tailed distribution of returns is why you should be bold.
Baseball has a truncated outcome
distribution: No matter how well you connect, the most you can get is 4.
In business, every once in a while, when you step up to the plate, you can score one thousand runs.
This long-tailed distribution of returns is why you should be bold.
Here's Bezos talking about the Echo:
1/2
If you had asked a customer "Would you like a black, always-on cylinder in your kitchen about the size of a Pringles-can that you can talk to and ask questions, that also turns on your lights and plays music?"
They would've said no.
1/2
If you had asked a customer "Would you like a black, always-on cylinder in your kitchen about the size of a Pringles-can that you can talk to and ask questions, that also turns on your lights and plays music?"
They would've said no.
2/2
No customer was asking for Echo. This was definitely Amazon wandering.
Wandering is an essential counterbalance to efficiency.
You need to employ both.
The outsized discoveries require wandering.
No customer was asking for Echo. This was definitely Amazon wandering.
Wandering is an essential counterbalance to efficiency.
You need to employ both.
The outsized discoveries require wandering.
How to think long-term?
Think it's good enough today, but it will get so much better.
Think it's good enough today, but it will get so much better.
Be an owner 💎🙌
Many investors are short-term tenants, they turn their portfolios so quickly that they are really just renting the stocks they temporarily "own."
Owners aren't so short-sighted.
Long-term thinking is both a requirement and an outcome of true ownership.
Many investors are short-term tenants, they turn their portfolios so quickly that they are really just renting the stocks they temporarily "own."
Owners aren't so short-sighted.
Long-term thinking is both a requirement and an outcome of true ownership.
Invest in long-term market leadership rather than short-term profitability, or short-term market reactions.
"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
— Benjamin Graham
You aren't 10% smarter with a 10% increase in stock price and conversely aren't 10% dumber when it goes down.
Always want to be weighed.
— Benjamin Graham
You aren't 10% smarter with a 10% increase in stock price and conversely aren't 10% dumber when it goes down.
Always want to be weighed.
It's impossible to produce extraordinary results without extraordinary people.
3 questions to consider before hiring:
1. Will you admire this person?
2. Will they raise the average level of effectiveness of the group?
3. Along what dimension might this person be a superstar?
3 questions to consider before hiring:
1. Will you admire this person?
2. Will they raise the average level of effectiveness of the group?
3. Along what dimension might this person be a superstar?
Pay to Quit.
Once a year, Amazon offers to pay its employees to quit.
While the headline says "Please Don't Take This Offer." The goal is to make them rethink their priorities.
An employee staying somewhere they don't want to be isn't healthy for the employee or the company.
Once a year, Amazon offers to pay its employees to quit.
While the headline says "Please Don't Take This Offer." The goal is to make them rethink their priorities.
An employee staying somewhere they don't want to be isn't healthy for the employee or the company.
"Leaders have relentlessly high standards — many people may think they are unreasonably high."
(Amazon leadership principles)
(Amazon leadership principles)
How to achieve high standards:
1/2
First, you have to be able to recognize what good looks like in that domain.
Second, you must have realistic expectations for how hard it should be to achieve that result — the scope.
1/2
First, you have to be able to recognize what good looks like in that domain.
Second, you must have realistic expectations for how hard it should be to achieve that result — the scope.
2/2
Just one example / perfect headstands
Most people think that if they work hard, they can master a handstand in about two weeks.
In reality, it takes about six months of daily practice.
If you think you can do it in two weeks, you're just going to end up quitting.
Just one example / perfect headstands
Most people think that if they work hard, they can master a handstand in about two weeks.
In reality, it takes about six months of daily practice.
If you think you can do it in two weeks, you're just going to end up quitting.
Most decisions should be made with around 70% of the information you wish you had.
Wait for 90, and you're being slow.
Plus, if you're good at course correcting, which you should be, then being wrong will be less costly than being slow.
Wait for 90, and you're being slow.
Plus, if you're good at course correcting, which you should be, then being wrong will be less costly than being slow.
"Disagree and commit."
If you have conviction without consensus, it's helpful to say,
"Look, I know we disagree on this, but will you gamble with me on it?"
No one can know the answer for sure, and you'll probably get a quick yes.
If you have conviction without consensus, it's helpful to say,
"Look, I know we disagree on this, but will you gamble with me on it?"
No one can know the answer for sure, and you'll probably get a quick yes.
Finally, it's always Day 1.
Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death.
And that is why it is always Day 1.
Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death.
And that is why it is always Day 1.
If you enjoyed this thread, consider getting the ebook version.
At 15 mins, it's slightly bigger — enough to share the ideas more freely. It's $9, so, maybe, show your support!
Regardless, retweet, and follow me @sumitgrrg for more of these.
Thanks!
amazon.com/dp/B08WJ3SPDN/…
At 15 mins, it's slightly bigger — enough to share the ideas more freely. It's $9, so, maybe, show your support!
Regardless, retweet, and follow me @sumitgrrg for more of these.
Thanks!
amazon.com/dp/B08WJ3SPDN/…
Love the support people!
Although, I just realized that the above link doesn't redirect you to the Amazon store of your choice.
Please use this one instead:
mybook.to/thefifteenminu…
Alternatively, show your support with an amount of your choice here: buymeacoffee.com/grrg
Although, I just realized that the above link doesn't redirect you to the Amazon store of your choice.
Please use this one instead:
mybook.to/thefifteenminu…
Alternatively, show your support with an amount of your choice here: buymeacoffee.com/grrg
Jeff Bezos just sent out his final annual shareholder letter as Amazon's CEO.
And, sure, you can count on me to finish what I started. Here's letter number #24
And, sure, you can count on me to finish what I started. Here's letter number #24
Create more than you consume.
1/2
If you want to be successful in business, and in life, create value for everyone you interact with.
Any business that doesn’t do it, even if it appears successful on the surface, isn’t long for this world. It’s on the way out.
1/2
If you want to be successful in business, and in life, create value for everyone you interact with.
Any business that doesn’t do it, even if it appears successful on the surface, isn’t long for this world. It’s on the way out.
2/2
Value creation is not a zero-sum game.
It is not just moving money from one pocket to another.
Draw the box big around all of society, and you’ll find that invention is the root of all real value creation.
And value created is best thought of as a metric for innovation.
Value creation is not a zero-sum game.
It is not just moving money from one pocket to another.
Draw the box big around all of society, and you’ll find that invention is the root of all real value creation.
And value created is best thought of as a metric for innovation.
The world wants you to be typical — don't let it happen.
1/3
In what ways does the world pull at you in an attempt to make you normal? How much work does it take to maintain your distinctiveness? To keep alive the thing or things that make you special?
1/3
In what ways does the world pull at you in an attempt to make you normal? How much work does it take to maintain your distinctiveness? To keep alive the thing or things that make you special?
2/3
We all know that distinctiveness — originality — is valuable.
We are all taught to "be yourself."
What you should really do is to embrace and be realistic about how much energy it takes to maintain that distinctiveness.
We all know that distinctiveness — originality — is valuable.
We are all taught to "be yourself."
What you should really do is to embrace and be realistic about how much energy it takes to maintain that distinctiveness.
3/3
There's a price for it and it’s worth it.
The fairy tale version of “be yourself” is that all the pain stops as soon as you allow your distinctiveness to shine.
It's misleading.
Being yourself is worth it, but it's not easy or free.
It will take continuous effort.
There's a price for it and it’s worth it.
The fairy tale version of “be yourself” is that all the pain stops as soon as you allow your distinctiveness to shine.
It's misleading.
Being yourself is worth it, but it's not easy or free.
It will take continuous effort.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
