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Saturday, February 2, 2013

The Forest for the Trees


Note 1:
Note 2:
Technology & content expense = 2/3 maintenance, 1/3 growth

So:




6.6% normal margin x Revenue of $61,093 Revenue = $4,032 normalized profit

Amazon's grown at 33% over the last ten years and 40% over the last five years. If Amazon grows at 10% for next ten years, the stock is worth $375.

Tell me this isn't a Buffett stock.