Are you ready to take your investment game to the next level? In a country where stock investment is not as popular as it should be, seizing the opportunity to invest wisely can set you on the path to financial success. One such golden opportunity lies in Amazon.com Inc (AMZN), the world's largest e-commerce company that has recently surpassed tech giants Google and Apple as the most valuable brand globally.
Amazon's Soaring Valuation
As of today, Amazon boasts a staggering market capitalization of US$315.5 billion, equivalent to Rp 4,480.1 trillion (assuming an exchange rate of Rp 14,200/US$). This places Amazon ahead of Apple and Google, each valued at US$309.5 billion and US$309 billion, respectively.
This remarkable feat is based on the findings of the BrandZ Top 100 Most Valuable Global Brand 2019 report, conducted by the research firm Kantar and reported by CNBC International on June 11, 2019.
Amazon's Ambitious Ventures
Amazon's ambition knows no bounds. In April, AMZN unveiled its ambitious plan to launch a satellite network comprising more than 3,000 satellites known as 'Project Kuiper.' This project aims to provide global internet access and is a bold move to extend the reach of the internet to rural and remote areas.
Despite the considerable financial risk involved, Amazon's founder, Jeff Bezos, believes that this venture is a "very good business for AMZN." If successful, the satellite network could revolutionize internet access in underserved areas.
Investing in Amazon for the Long Haul
Given Amazon's track record and its expansive business plans, investing in Bezos's brainchild for the long term appears highly enticing. It's worth noting that back in the early 2000s, Amazon was a pioneer in the tech industry's foray into the stock market during the dot-com boom.
However, at that time, internet penetration was not as widespread as it is today, and tech stocks, including Amazon, suffered a significant downturn.
Amazon's Remarkable Growth
Over time, Amazon's influence has continued to grow. From its early days as an online bookstore, it has rapidly expanded its product offerings to encompass almost everything imaginable.
The stock price of Amazon has gradually risen. Let's simulate the returns an investor could have garnered by holding AMZN shares.
Calculating Potential Returns
Based on the table above, if you had invested US$10,000 or approximately Rp 142 million since the beginning of the year, you would have already made a profit of around Rp 33.41 million. In less than six months, your investment has yielded a return of approximately 23.53%.
Moreover, if you had invested in Amazon when it went public, your returns would have exceeded 100-fold (10,207.33%) without accounting for currency exchange fluctuations.
Currency Exchange Considerations
It's essential to bear in mind the risk associated with investing in stocks denominated in currencies other than the Indonesian rupiah. Exchange rate fluctuations can either erode or enhance your returns.
Now, let's factor in the appreciation of the US dollar against the rupiah during that period.
A Long-Term Success Story
At the initial public offering (IPO) price of US$18 per share, a US$10,000 investment would have given you 556 Amazon shares. In 1987, the US dollar exchange rate was approximately Rp 1,643.85 (according to FX.sauder.ubc.ca), making your investment worth around Rp 16.44 million at that time.
Fast forward to June 12, 2019, and Amazon's stock price closed at US$11,855.32 per share. Consequently, your 556 AMZN shares (without any additional purchases) would be valued at US$1.03 million today.
In Indonesian rupiah, this translates to approximately Rp 14.65 billion (assuming an exchange rate of Rp 14,200/US$). In rupiah terms, your investment has grown by an astounding 89,109% or 891 times, resulting in an impressive Rp 14.63 billion in returns.
Interestingly, even in the past year, which marked the period of the smallest return, Amazon still delivered a respectable single-digit return of 8.83%.
Investing in Amazon stock can be a game-changer for your financial future. The combination of Amazon's continued expansion, ambitious ventures, and historical performance makes it a compelling investment option. Don't miss out on the opportunity to potentially secure your financial future with Amazon stock.
But how do you go about investing in Amazon, and what strategies should you employ to maximize your returns? Let's delve deeper into these crucial aspects.
Crafting Your Amazon Investment Strategy
1. Long-Term Perspective
Amazon's journey from a mere online bookstore to a global e-commerce powerhouse demonstrates the importance of taking a long-term perspective in your investment. While short-term fluctuations may occur, the overall trajectory has been upward. By adopting a long-term perspective, you can ride out market volatility and benefit from Amazon's continued growth.
Diversification is a key principle in investment. Don't put all your eggs in one basket. Consider building a diversified portfolio that includes Amazon along with other promising stocks from various sectors. This can help spread risk and potentially enhance your returns.
3. Stay Informed
Stay updated with the latest news and developments related to Amazon. Amazon's success is often driven by innovation and expansion into new markets. Being informed about these developments can help you make informed investment decisions.
4. Seek Professional Advice
If you're new to investing or unsure about your strategy, consider seeking advice from a financial advisor. They can provide personalized guidance based on your financial goals and risk tolerance.
5. Monitor Your Investment
Once you've invested in Amazon or any other stock, it's essential to monitor your investment regularly. Track its performance, review your portfolio, and make adjustments as needed to align with your financial goals.
The Future of Amazon
As we look ahead, Amazon's growth potential seems promising. The company's ventures into areas like cloud computing, artificial intelligence, and healthcare indicate a commitment to diversifying its offerings and expanding its reach.
Moreover, the global shift toward e-commerce and the increasing demand for online services further solidify Amazon's position as a market leader.
Investing in Amazon stock offers an opportunity to be part of a remarkable success story. With a long-term perspective, diversification, and careful monitoring, you can potentially reap the rewards of this e-commerce giant's continued growth.
Don't let the opportunity slip through your fingers. Consider including Amazon in your investment portfolio and embark on a journey towards financial prosperity