Thursday, October 17, 2013

A frugal company with P/E as high as 2767

Just read the BusinessWeek cover story of "The secrets of Bezos", a very interesting story about the amazing Amazon's CEO, Jeff Bezos. It always beats me with one question: "Why Amazon can be so successful?" Apple's one-quarter profit is more than 2.5 times of Amazon's total profit in the last 10 years. Apple's P/E is only 13 while Amazon's is a mind-boggling 2767 (July, 2013). Amazon's employees don't have fancy office desk, rather, they have door-desks (see photo). It is still hard to imagine the working ethos in this mammoth but extremely frugal company.

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