Warren Buffett Regrets Not Investing in Amazon, Cites “Miracle” Growth as Deterrent
In a shocking revelation, renowned investor Warren Buffett has admitted that he passed on the opportunity to invest in Amazon not once, but twice. The CEO of Berkshire Hathaway Inc explained in a recent interview that he now regrets his decision, calling it a “mistake in execution.”
Buffett’s reluctance to invest in the e-commerce giant began in 1994 when Amazon was just starting out as an online bookstore. At that time, he failed to recognize the potential of the company and opted not to invest. Three years later, when Amazon went public, Buffett again passed up the opportunity. Even Wall Street was skeptical of an online initial public offering (IPO), but Amazon’s stock eventually skyrocketed, leaving Buffett with a sense of missed opportunity.
However, despite his regrets, Buffett holds Amazon’s founder and CEO, Jeff Bezos, in high regard. He met Bezos two decades ago and was immediately impressed by his intellect and clear thinking. Buffett admits that Bezos exceeded his expectations and acknowledges the “miracle” of Amazon’s growth.
Buffett’s reluctance to invest in Amazon is not rooted in skepticism about the company’s potential. Instead, it aligns with his cautious and methodical investment philosophy. In a 2018 interview with CNBC, Buffett explained, “If I think something is going to be a miracle, I tend not to bet on it.”
Buffett’s missed opportunity with Amazon weighs heavily on him psychologically. He admits to having “so many psychological problems” from not investing that it makes it difficult for him to do it now. Every Amazon annual report serves as a painful reminder of what could have been.
While Buffett’s investing approach may lean toward proven and stable investments, he recognizes that others may choose to chase the next big thing. High-risk, high-reward scenarios, such as investing in startups, can be enticing for those seeking rapid growth. Buffett’s decision not to invest in Amazon serves as an educational narrative, reinforcing the idea that knowing oneself is crucial in the investment landscape.
In hindsight, Buffett admits his mistake and acknowledges that not every investment decision will be correct. His decision not to invest in Amazon offers a valuable lesson in understanding individual risk tolerance and investment strategies.
Buffett’s revelation serves as a reminder that even seasoned investors can miss out on lucrative opportunities. With investment options aplenty, it’s essential to carefully consider personal preferences and risk appetite before making pivotal decisions.
In other related news, Amazon has announced its ambitious plan to build an internet satellite constellation. The project aims to deliver global internet coverage, further expanding the company’s reach and influence.