Editor’s Note: Charles is out today for the Jewish holiday of Shavuot. He wanted to make sure that you still got this article, so he prepared it ahead of time.
In 2000, Amazon’s stock was down more than 80%.
The dot-com bubble had burst, and Wall Street was running for the exits.
Jeff Bezos opened his shareholder letter that year with one word: “Ouch.”
In the late ’90s, Bezos was just selling books online — few saw Amazon as the giant it would become.
But here’s what set Bezos apart — and why every serious investor should study that letter.
While the stock was getting crushed… the business was getting stronger.
Sales jumped from $1.6 billion to $2.8 billion.
Gross profit more than doubled.
Customer count surged to 20 million.
Cash in the bank hit $1.1 billion.
And Amazon earned the highest customer satisfaction score ever recorded for a service company.
In short, the stock price told you nothing about the real story.
Bezos didn’t flinch. Instead, he reminded investors of a timeless truth from Benjamin Graham:
“In the short term, the stock market is a voting machine. In the long term, it’s a weighing machine.”
When it came to weight, tangible business results showed that Amazon was only getting heavier.
But Wall Street didn’t care.
Traders chased momentum, rode hype, and when the music stopped, they bailed. Amazon’s share price dropped as low as $0.75 (split-adjusted) by December 2000.
And yet… those who kept their eye on the business, not the stock, were rewarded beyond belief.
On May 28, 2025, Amazon closed at $205 per share. A $10,000 investment at the lows would be worth over $2.75 million today — a 27,000% return.
That’s what the Alpha-4 Approach is all about.
We don’t follow the crowd. We look for:
Alpha Market – Huge, growing industries.
Alpha Leadership – Visionary founders who think long-term.
Alpha Money – Real cash flow, smart reinvestment.
Alpha Price – A stock price that understates a company’s potential.
In 2000, Amazon checked all four boxes. The stock told one story… but the business told a very different one.
That’s how we invest in the American Prosperity Report. We don’t get shaken by short-term noise. We buy real businesses, with real value, and hold them as they grow stronger.
Because eventually, the weighing machine shows up. And when it does — you want to be holding the winners.
Just like those who stayed the course with Amazon.
Email me at [email protected].
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Regards,
Charles Mizrahi
Prosperity Insider
