“Your margin is my opportunity”.
Founder of Amazon, Jeff Bezos, explained capitalism in those five words.
That single idea captures the spirit of American enterprise more clearly.
Strong profits never sit quietly. They invite challengers. They attract innovators who look at a rich margin and see a path to serve customers better at a lower price.
Capitalism rewards that kind of drive. It punishes companies that assume success will last without constant improvement.
Bezos proved the truth of his own line from the moment he launched Amazon.
Bookstores: The big bookstore chains enjoyed wide margins by filling large stores with costly inventory. Bezos saw those margins as an opening to build something better. His online store offered more titles at lower prices, which saved customers money and time. The chains simply could not match that value.
AWS: Bezos repeated the pattern with Amazon Web Services. Companies once paid high prices for hardware, software, and maintenance, which produced steady profits for established firms. Bezos saw those margins as a clear opportunity. He offered computing power on demand at far lower cost. AWS reshaped the industry and became a major profit engine.
Prime: Shipping showed the same rule in action. Carriers earned strong profits by charging separate fees for speed and weight. Bezos saw an opening and created Prime, which provided fast and reliable shipping through one membership price. Customers loved the service. Retailers everywhere had to adjust to survive in the new environment.
Jeff Bezos mastered the rule that rich margins spark opportunity.
Bezos understood capitalism’s simple rule. When margins grow too fat, challengers show up. Those challengers force industries forward. They create innovation, lower prices, and better service.
That rule shaped Amazon. It shapes every competitive market in America today.
Market Leaders Draw Competitors Like Bees To Honey
This is capitalism at work.
Strong margins attract strong competitors like bees to honey. The result is better products, lower prices, and more innovation. That same story now plays out in the most advanced part of the modern economy.
NVIDIA built a remarkable lead in AI chips. Its results have been extraordinary.
NVIDIA earned more than $110 billion in operating income over the past four quarters. That equals $0.59 of profit for every dollar of revenue.
In semiconductors, that level of performance sits in rare territory. Many companies in the industry would be thrilled with margins half that size.
NVIDIA reached a 70% gross margin. Investors noticed. Customers noticed. Competitors noticed even more.
Companies such as Google, AMD, and Amazon looked at those profits through the same lens Bezos used throughout his career: Your margin is my opportunity.
NVIDIA earned its results through brilliant engineering and bold execution. Yet capitalism does not allow any leader to enjoy such a position without challenge.
Google plans to sell its in-house TPU chips to major customers.
AMD is preparing its MI450 platform with strong early interest.
Amazon keeps advancing its own training chips.
These companies bring financial strength and technical skill. Google alone generated more than $150 billion in operating cash flow over the past year. That type of strength can support any serious push into AI hardware.
None of this means NVIDIA is falling behind. The business remains the clear leader. The largest companies in the world still rely on NVIDIA for training and inference.
Meta, Google, Amazon, and Microsoft continue to purchase large volumes of its most advanced products. Analysts believe NVIDIA can defend much of its position even as rivals move forward.
The story is not about NVIDIA winning or losing. It is a reminder that capitalism keeps every business sharp.
When margins rise, competition rises with them. Over time, this pressure strengthens the entire economy through new ideas, better products, and rising productivity.
Competition Keeps America Growing Strong
That is why our approach in American Prosperity never changes.
We study tailwinds that last. We study leaders who adapt. We study companies that build financial strength and reinvest in the future. We study price because even a great business becomes risky when investors forget that competition always returns.
NVIDIA sits inside one of the strongest tailwinds of my career.
Artificial intelligence is spreading through every part of the economy. It improves factories, hospitals, customer service, logistics, and software. T
hese gains are real. They come from businesses using practical tools that raise productivity. Nvidia helped launch this wave, and it continues to play an important role.
Still, our work is not to admire the leader.
Our work is to think the way Bezos thought. When margins grow too rich, challengers move in. The companies we own must keep building, keep investing, and keep serving customers better than anyone else.
That is how durable wealth is created in America.
This cycle gives me confidence in the future. It shows the strength of our system. It shows why America continues to lead the world in innovation and enterprise.
We have businesses that push forward. We have leaders who welcome competition. We have investors who stay focused on value.
Our portfolio stands on that foundation.
America keeps building. Our approach keeps working. The opportunities ahead remain bright for investors who stay focused on real businesses that grow stronger year after year.
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Regards,
Charles Mizrahi
Prosperity Insider
