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Sources

Letter

Amazon's 1997 letter to shareholders

Jeff Bezos · 1998

Amazon's first shareholder letter sets out a long-term, cash-flow-first philosophy that still frames how investors judge high-growth companies.

1 idea from this letter

  • Decision principleFounders and companies located

    Given a choice between flattering earnings and future cash flows, take the cash flows

    Tell investors in advance that you will optimise long-term cash flows over reported earnings, then do it, so the market can price the choice rather than be surprised by it.

    Any growth company valuation, any founder letter, and the interview question of how to value a company that reports no profit.