As investments go, there aren’t too many that have performed as well as Amazon.com, Inc. (NASDAQ:AMZN). A $10,000 investment in AMZN stock a decade ago is today worth more than $250,000.
It’s how Amazon CEO and founder Jeff Bezos became the world’s richest person, whose 17% ownership of the company he founded is worth $90.7 billion as I write this.
At 53 years of age, Bezos still has a lot of years ahead of him to make a difference in the world. The question is whether he’ll take this incredible privilege he’s been given — and earned I might add — to do a lot of good.
Why Should This Matter to Investors?
Well, it shouldn’t if your only concern is accumulating substantial wealth. However, as we age, we tend to become far more introspective about the role we play in the world.
It’s possible that Jeff Bezos’ legacy will forever be linked to the permanent change he’s brought to the retail industry. There’s nothing wrong with that, but when you have $90 billion at your disposal, the benchmark moves higher.
Anyone who believes in responsible investing will naturally be interested in what Amazon, and by association, Jeff Bezos, is doing to make the world a better place and not just a giant cash register for the company and AMZN stock.
For me, I can’t invest in a firm like Canada Goose Holdings Inc. Subordinate Voting Shares (NYSE:GOOS), even though I’ve recommended the stock on several occasions since its IPO in March, because of the way in which it procures the down and fur used in winter jackets.
It’s got a great business model and will be very successful, but I expect more from the businesses I choose to invest with, and if you have a social conscience, I believe you should too.
The Bezos Benchmark
To date, Jeff Bezos hasn’t been nearly as active as other U.S. billionaires such as Bill Gates and Warren Buffett. Perhaps, it’s just a function of age. Bezos is nine years younger than Gates and 34 years younger than Buffett.
There’s still plenty of time to make a difference. But why wait?
“He is the only one of the top five billionaires in America who has not signed the Giving Pledge, the promise created by Mr. Gates and Warren Buffett for the superrich to give away at least half of their wealth,” stated the New York Times in June. “He has never appeared on the Philanthropy 50, a list of America’s 50 largest donors, that is published yearly by The Chronicle of Philanthropy.”
It’s estimated that Bezos has given approximately $100 million to charity or less than 1% of his net worth. At a time when tax cuts are going to put even more money in the Seattle billionaire’s pockets, it seems odd that he’s failed to step up, especially when you consider how much Amazon has benefited from not collecting sales taxes in the past from its customers in many U.S. states. It’s estimated to be $500 million in South Carolina alone.
Bezos and company have significantly benefited from governments looking the other way on sales taxes. It’s time he recognizes this and gives some money back to those most in need.
Amazon’s Second Headquarters
One way Bezos can do this is by going to a city that could use a leg up like Detroit or Cleveland or some other city that’s suffered under manufacturing’s demise in the Rust Belt.
I’m not demeaning either of those cities. In fact, I recently suggested three reasons Amazon and AMZN stock would benefit from opening its second headquarters in Detroit. None of them had to do with a story of hardship. Detroit’s an up and comer.
Amazon should join with Dan Gilbert and make a difference in Detroit.
Gilbert, whose personal wealth is listed at $5.8 billion, a fraction of Bezos’s, has invested $300 million buying and renovating downtown Detroit office space to encourage others to do the same.
Beyond that, Gilbert and his wife have signed the Giving Pledge and plan to give most of their wealth back to the communities of Detroit and Cleveland where they have residences.
Dan Gilbert’s just two years older than Bezos.
Bottom Line on AMZN Stock
The upside of owning AMZN stock is evident. I don’t recommend you sell AMZN stock now or anytime soon.
However, until Jeff Bezos steps up and does the right thing, I believe there will be an asterisk beside his name on the Forbes 400.
Sign the Giving Pledge. Make your employees and shareholders proud.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.
