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Strategies & Market Trends : Value Investing

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To: James Clarke who wrote (11028)8/1/2000 2:04:52 PM
From: Freedom Fighter  Read Replies (1) of 78520
 
James,

I have no clue about Amazon. I've just noticed that most investors either swear by it or hate it.

The one thing I'm sure of is that there IS a profitable business there if they want it.

There are many times that I don't feel like going out and spending lots of time driving to the book store, browsing etc... I'm busy. I'd rather point and click. For that priviledge I am willing to pay a premium price. I am certain there are LOTS of others just like me.

To become profitable Amazon would only have to figure out what expenses they have that book retailers (super stores etc...) do not. And then on the flip side, what expenses they do not have vs. book stores.

Then if they must charge a premium for my purchase and convenience, I am fairly certain it isn't enough to offset and hour of my time, gas money, multiple visits because they don't have it in the store etc... I will still buy it from Amazon on those days.

Once they do that, the bigger their volume the less the premium must be. (maybe after a time they can do it cheaper???)

I realize this is a simplistic view of complicated matters (that I don't understand.) However, there's no doubt this company CAN make money. All they would have to do is change their vision from grand success to making money.

If the current vision turns out to be correct they will make a lot of money. If not, they will shrink and make some money. There's a place between going under and owning the world that some investors forget about.

Wayne
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