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Strategic Investing: How The Down 5% Strategy Paid Off Again - This Time With Amazon

Good morning Surgevesters,


We're excited to share our ongoing investment journey with Amazon (AMZN). Our strategic approach, including the down 5% strategy, has propelled us in the right direction. Through purchases on August 24, 2023, at a price of $135.80, on October 3, 2023, at $125.21, and again on October 26, 2023, at $118.90, we've successfully managed to lower our average cost basis to an impressive $128.61. We believed this strategy, particularly in the realm of AI-driven companies like Amazon, would yield good results. It's important to remember that we don't employ the down 5% strategy for every stock. It's a case-by-case decision, carefully assessed for its growth potential. As we previously employed this tactic with Starbucks, its success served as further confirmation of its effectiveness.


Our conviction in Amazon's potential for substantial growth remains unwavering. The stock has shown promising upward momentum, currently valued at $138. This progress is a positive step in the right direction.


Under the visionary leadership of CEO Andy Jassy, Amazon has implemented strategic initiatives, such as the transition to a regional delivery and fulfillment network. This shift has significantly enhanced efficiency and customer satisfaction. Jassy's forward-looking statement, "We have a long way before being out of ideas to improve cost and speed," reflects Amazon's relentless pursuit of innovation and its commitment to setting new industry standards.


The integration of artificial intelligence and machine learning in operations is a testament to Amazon's commitment to continuous improvement. By automating processes and leveraging cutting-edge technology, Amazon not only lowers costs but also elevates the overall customer experience.


Jassy's updates on generative artificial intelligence are incredibly promising. Initiatives like Amazon Bedrock and Code Whisperer showcase the company's pioneering efforts in this field. These innovations have the potential to evolve into substantial revenue streams, further solidifying Amazon's position as an industry leader.


While the stock market is inherently unpredictable, Amazon's track record and ongoing innovations inspire confidence. The company's dedication to enhancing efficiency, coupled with its forward-thinking approach to technology, bodes well for its future prospects.


In conclusion, our investment in Amazon exemplifies our commitment to strategic, forward-thinking investment practices. By capitalizing on opportunities presented by market fluctuations, we've not only lowered our average cost basis but also positioned ourselves to benefit from Amazon's continued growth.


As we continue on this investment journey, we remain optimistic about the potential Amazon holds. The company's relentless pursuit of innovation and commitment to customer satisfaction aligns with our investment philosophy. While challenges and uncertainties are inherent in the stock market, Amazon's track record and ongoing efforts to drive progress make it a compelling investment opportunity.


The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.






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