Optimal Finance Daily, Episode 3288: “5 Lessons I Learned From My Investment In Amazon Stock” by Mr. Finer
Date: September 19, 2025
Host: Diania Merriam
Featured Blogger: Mr. Finer of MrFiner.com
Episode Overview
This episode of Optimal Finance Daily centers on the personal investing journey of Mr. Finer, particularly focusing on the valuable lessons he learned from investing in Amazon stock. Through his story, listeners receive practical investing wisdom—balancing expert advice, self-discovery, caution, and humility. Diania Merriam then adds her own perspective on stock picking versus passive investing.
Key Discussion Points & Insights
Mr. Finer’s Amazon Investment Journey
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Initial Discovery & Hesitation (00:59 – 02:10)
- Mr. Finer first considered Amazon a potential investment in 2011 after appreciating its customer service as a new Prime member.
- Despite intrigue, he was deterred by “expert” warnings that Amazon (then at $150/share, with a P/E near 100) was overpriced or doomed.
- Quote [01:19]:
“The prevailing opinion at the time was that Amazon...was wildly overpriced. Some experts thought it would fall to $40, while some predicted it would go bankrupt.” – Mr. Finer
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Watching from the Sidelines (02:11 – 03:07)
- As Amazon’s price doubled, Mr. Finer hesitated, waiting for the price to drop. Negative expert commentary persisted despite the stock’s growth.
- He started questioning the validity of mainstream financial pundits.
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Decision to Invest (03:08 – 03:40)
- After two years of self-directed research, Mr. Finer overcame fears and invested in Amazon, albeit at a higher price than he originally considered.
- Quote [03:36]:
“I wish I had started investing when the stock was at $150, but I guess better late than never.” – Mr. Finer
The 5 Lessons
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Exceptional Companies Always Feel Expensive (03:41 – 04:33)
- Great businesses are rarely “cheap.” Their apparent expensiveness often underpins their potential for outsized returns.
- Mr. Finer reduced risk by investing a small amount and putting most of his portfolio in a diversified index fund (VOO).
- Long-term perspective helped him weather high volatility.
- Quote [04:21]:
“It does feel reckless investing in companies like Amazon, but there’s a way to take a chance...without substantial risk.” – Mr. Finer
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Visionaries are Rare and Valuable (04:33 – 05:18)
- Exceptional founders (like Bezos or Musk) can transform multiple industries.
- Mr. Finer values playing a part in companies that “make the world better,” even at the risk of loss.
- Amazon’s famously innovative culture (Two-Pizza Rule, “Day One” mindset, etc.) contributes to its long-term edge.
- Quote [05:02]:
“Visionaries are hard to come by...I’d rather invest my money with them even if the investment goes to zero.” – Mr. Finer
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Doing Your Own Research Matters (05:19 – 05:57)
- Independent study led to a confident investment decision, enabling him to ignore alarmist experts.
- Understanding personal reasons for investing fosters resilience during downturns.
- Quote [05:37]:
“There’s no substitute for doing your own research. Knowing why I’m investing in a company lets me ignore the so-called experts.” – Mr. Finer
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Biggest Gains Come From Not Selling (05:58 – 06:44)
- The urge to “book profits” when stocks climb is natural, but staying invested delivered outsized results.
- Mr. Finer only plans to sell if: (a) the reason for investing changes, or (b) the position imperils his peace of mind from overexposure.
- Quote [06:35]:
“The biggest gains are made by not selling. I didn’t sell when Amazon went from $400 to $800...now it’s at $3,600 and I’m still not selling.” – Mr. Finer
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It's Better to Be Lucky Than Good (06:45 – 07:29)
- Serendipity played a role; if not for becoming a Prime member in 2011, Mr. Finer might not have invested.
- Humility is key, recognizing the role of luck in investing success.
- Quote [07:23]:
“Luck plays a big part in investing success as it does with any other success in life. Having a bit of humility is, I think, the biggest lesson of investing.” – Mr. Finer
Host Commentary: Diania Merriam’s Take (08:40 – 09:57)
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Diania emphasizes her own preference for index investing over picking individual stocks, citing lack of time and interest for deep research.
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She mentions investing clubs as a less solitary way to engage in stock picking.
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Quote [08:57]:
“I don't trust myself to choose which stocks are going to do well, so I just buy all of them in low fee total market index funds. They aren't sexy, but they work, my friends.” – Diania Merriam -
Diania recommends The Simple Path to Wealth by J.L. Collins for those interested in easy-to-understand investing strategies.
Notable Quotes & Memorable Moments
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On market timing and regret:
“I wish I had started investing when the Stock was at 150, but I guess better late than never.” – Mr. Finer [03:36] -
On conviction and research:
“Knowing why I’m investing in a company lets me ignore the so-called experts.” – Mr. Finer [05:37] -
On humility in investing:
“Having a bit of humility is, I think, the biggest lesson of investing.” – Mr. Finer [07:23] -
Diania on indexing:
“They [index funds] aren't sexy, but they work, my friends.” – Diania Merriam [08:57]
Summary of Key Takeaways
- Exceptional companies may always seem overpriced, but their growth can surprise even seasoned investors.
- Independent research and understanding a company’s fundamentals are critical—don’t rely solely on pundits.
- Patient, long-term holding can lead to the greatest rewards.
- Acknowledge the role of luck and stay humble.
- For most, broad low-cost index funds offer a simple, effective path to wealth.
Useful Timestamps
- 00:59 – Story begins: Mr. Finer’s first consideration of Amazon stock
- 03:41 – The 5 Lessons section begins
- 04:33 – On visionary leaders and Amazon’s company culture
- 05:19 – Importance of independent research
- 05:58 – Power of long-term holding
- 06:45 – On the importance of luck and humility
- 08:40 – Host Diania Merriam’s personal investment approach and final thoughts
By blending Mr. Finer’s candid lessons and Diania's relatable perspective, this episode offers a balanced, motivating look at both individual stock investing and the wisdom of simple, passive strategies.