The essence of investment logic and valuation system

The essence of investment logic and valuation system is to judge whether a business is ultimately valuable and what price is appropriate. In the case of Amazon, Bezos did see the essence of this business 20 years ago, and told him with practical actions that my annual growth logic comes from how much cash flow the company can generate. Flow constitutes the company’s source of investment funds. These investments ensure the continuous growth of the company’s scale. This continuous growth also guarantees the company’s long-term profitability and market position. One day when the company really stops growing, it may be released at any time. With a huge net profit performance, what Bezos always said is: Amazon is not unable to make money, but invests all the money it earns in exchange for future growth.