In the mid-1990s, a $10,000 investment in a nascent online bookstore seemed risky, but for Jeff Bezos’s siblings Mark and Christina, the decision may have catapulted them into the ranks of billionaires. A Bloomberg report reveals that in 1996, they each purchased 30,000 Amazon.com Inc. shares for $10,000. This investment has since grown exponentially, with each sibling’s stake potentially reaching over $1 billion today, a 10,249,900% gain.
According to an article by Luxury Launches, referencing a Bloomberg report from July 31, 2018, the stakes held by Jeff Bezos’s siblings were valued at $640 million each, based on Amazon’s stock closing price of $91 at the time. Fast forward to the present, and with Amazon’s stock price at $149, their stakes are now valued at $1.044 billion each.
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Bezos, recognizing the emerging potential of e-commerce, embarked on an ambitious venture by founding Amazon in July 1994. This was a time when the internet was primarily used by government and educational institutions. Despite these limitations, Bezos was undeterred and pursued his vision, seeing the broader possibilities that the internet could offer.
Convincing investors, including his family, of the venture’s potential despite a high risk of failure was a monumental task. Bezos cautioned his parents about the 70% risk of losing their investment. According to the book “The Everything Store: Jeff Bezos and the Age of Amazon,” he said, “I want you to know what the risks are because I still want to come home for Thanksgiving if this doesn’t work.”
In 1994, Bezos reportedly held 60 meetings with family members, friends and potential investors in an attempt to persuade them to invest in his online bookshop idea. Out of the 60 people he approached, 38 were not convinced. Years later, Bezos reflected on these early rejections, noting how some of those who declined his offer were still affected by their decision, either accepting it as part of life or finding it too painful to discuss.
Amazon’s journey to success was fraught with challenges. It went public on May 15, 1997, at $18 per share, navigating through the turbulent times of the dot-com bubble. Yet, under Bezos’s leadership, the company not only survived but flourished, expanding beyond online retail and achieving a market cap of $1.5 trillion.
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Mark and Christina Bezos, despite their low public profiles, have been integral to Amazon’s story. Mark Bezos, diverging from the Amazon path, carved out a successful career in advertising and philanthropy, while Christina Bezos has maintained a discreet presence, focusing on family and philanthropic efforts.
The Bezos siblings’ journey with Amazon, from a high-risk investment to a billion-dollar return, underscores the power of visionary entrepreneurship and the potential of the digital economy. Their story, intertwined with the rise of one of the world’s most influential companies, highlights the far-reaching impact of strategic risk-taking in the rapidly evolving world of technology and commerce.
The story of the Bezos siblings and their investment in Amazon is more than a tale of financial gain; it’s an example of the potential of startups. Their success is a reminder that investing in a startup, while risky, can lead to extraordinary outcomes. It’s about spotting opportunities in visionary ideas and the courage to back them, even when the future seems uncertain.
Imagine being part of something that starts small but grows into a global phenomenon. That’s the allure of investing in startups. Today’s small online bookstore could be tomorrow’s tech giant.
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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
