Assuming Bezo's salary is very small (typical for founders) ... As such, his net worth is directly tied to the Amazon stock price (+whatever non-Amazon assets he holds.) Difficult to use a straight revenue calculation because his net worth isn't directly tied to revenue.
Here is what you have to do:
- You need to calculate what % of Amazon is owned by Bezos.
- You need to calculate what the change in total annual Amazon revenue is with your $100.
- Assuming a constant long run P/E ratio (all market fluctuation ignored), you then apply this P/E ratio to the % change in revenue as calculated in #2.
- You now know how much your purchase impacted the Amazon stock price (#3), and then you can back out the Bezos question with the % found in #1.
The calculations are left to the casual observer.
Assuming Bezo's salary is very small (typical for founders) ... As such, his net worth is directly tied to the Amazon stock price (+whatever non-Amazon assets he holds.) Difficult to use a straight revenue calculation because his net worth isn't directly tied to revenue.
Here is what you have to do:
1. You need to calculate what % of Amazon is owned by Bezos.
2. You need to calculate what the change in total annual Amazon revenue is with your $100.
3. Assuming a constant long run P/E ratio (all market fluctuation ignored), you then apply this P/E ratio to the % change in revenue as calculated in #2.
4. You now know how much your purchase impacted the Amazon stock price (#3), and then you can back out the Bezos question with the % found in #1.
The calculations are left to the casual observer.
The proof of this theorem is beyond the scope of this text.
(Alternatively)
The proof of this theorem is left as an exercise to the reader.
Flashbacks of undergrad
> The proof of this theorem is beyond the scope of this text.
(Alternatively)
> The proof of this theorem is left as an exercise to the reader.
Flashbacks of undergrad
(post is archived)