The best stock of a generation fell 94% first. Most people don't know that.


Amazon, dot com crash. Roughly $113 down to about $5.50 by late 2001.
Down 94%. $100k became ~$6k. & this wasn't some junk startup... it was THE Amazon. The company that went on to change everything.
Two lessons off this one chart & they both matter:
First... even the greatest company in the world can fall 90%+ when you buy it at a bubble price. Amazon the BUSINESS was fine. Amazon at 1999's price was a 13 year mistake. This is why I stress the importance of valuations so much.
Second... the people who actually got rich off Amazon weren't the geniuses who picked it early. They were the ones still standing AFTER the crash... diversified, not leveraged, able to hold & keep buying through the wreckage.
My point... In order to have a great investment you need both a great company and a good price. You need both.
AMZN-0.30%
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