3288: 5 Lessons I Learned From My Investment In Amazon Stock by Mr. Finer on Stock Market Investing Advice

Summary

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

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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.

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Key Discussion Points & Insights

Mr. Finer’s Amazon Investment Journey

• 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

• 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.

• 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

1. 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

2. 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

3. 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

4. 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

5. 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

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Host Commentary: Diania Merriam’s Take (08:40 – 09:57)

• Diania emphasizes her own preference for index investing over picking individual stocks, citing lack of time and interest for deep research.

• She mentions investing clubs as a less solitary way to engage in stock picking.

• 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.

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Notable Quotes & Memorable Moments

• 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]

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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.

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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

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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.

Transcript

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[Mr. Finer]

This is Optimal Finance Daily 5 lessons I learned From My Investment in Amazon stock by Mr. Finer of MrFiner.com Around 2011 I first became aware of Amazon. I had recently become an Amazon prime member and I was impressed by Amazon's fast delivery and customer service. I wondered if I should invest in Amazon stock. Amazon, a very expensive stock. The prevailing opinion at the time was that Amazon, around $150 in 2011, was wildly overpriced. Some experts thought it would fall to $40, while some predicted it would go bankrupt. Pundits pointed to Amazon's lack of profitability and a high price earning or P E ratio close to 100. Whereas most other companies had a P E of 15 or 20. Walmart, the biggest retailer in the world, was getting serious about online sales. Walmart was massive. 400 billion in sales compared to Amazon. 40 billion in sales. Experts forecasted that soon Walmart's online business would make Amazon irrelevant. I decided not to invest in Amazon. It felt too risky. As I watched from the sidelines, Amazon stock doubled from $150 in 2011 to to 300 in 2012. Surely the experts were right. I thought maybe the stock will come down and then I would buy it at a lower price, changing my mind on Amazon. As I waited further, the stock kept climbing. The funny thing was the negative articles about Amazon were still continuing. In 2013, I started wondering if these so called experts were really that smart. I wondered how many people had listened to these talking heads and missed out on buying Amazon. Also, I realized that folks had written off Amazon right from the start. I was able to find an article from way back in 1999. While waiting on the sidelines, I was also doing my own research. I became convinced that Amazon was not only a great company, it was also a great investment. So after dithering for more than two years, I finally decided to invest in Amazon. I wish I had started investing when the Stock was at 150, but I guess better late than never. In addition to this realization, I also learned a few other lessons. Number one, Exceptional companies always feel expensive. Looking back, there was never a chance that I would have been able to buy Amazon at a cheap price. Exceptional companies always seem overpriced. However, these are the companies that generate exceptional returns. It does feel reckless investing in companies like Amazon, but there's a way to take a chance on individual stocks without taking on substantial risk. I only invested a little bit of my money in Amazon and I did it over several months. The largest portion of my investment was still in a diversified fund voo, so I was comfortable taking on higher risk with a tiny portion of my portfolio. Even if Amazon went bankrupt, it would not impact my overall portfolio much. I also had a long term perspective which helped me stay the course when the stock dropped 20% or 30%, which it did many times and still does to this day. Visionaries are hard to come by. There are many great business leaders, but few who actually change the world. Visionaries are hard to come by and especially those who are also great at business. People like Bezos and Musk disrupt not just one, but multiple industries simultaneously. Given a choice, I would rather invest my money with them even if the investment goes to zero. At least I played my part in making the world better. Visionaries create an exceptional culture. Amazon is famous for its culture like the two piece, a rule, one way, two way door concept, six pagers disagree and commit, relentless customer focus, day one mentality, etc. It's hard to overstate how big a competitive advantage culture can be. 3. Doing your own research matters. During 2011-2013, when I was waiting for Amazon stock to come down, which it never did, I kept studying the company. I understood its business Strengths, threats, competition, etc. I realized that visionary leadership and strong culture would enable this company to succeed well into the future. This helped me ultimately make up my mind to invest in Amazon. There's no substitute for doing your own research. Knowing why I'm investing in a company lets me ignore the so called experts. It also helps me not to sell in a panic if the stock falls 20 or 30%. Number four biggest gains are made by not selling. What do you do when your stock doubles? How about when it triples or goes up 10 times? It's very difficult not to sell and book profits in these cases. What's the point of investing if you don't make money? However, I think the biggest gains are made by not selling. I didn't sell when Amazon went from 400 to 800, nor when it went to 1000 or 2000. It's almost impossible to sell high and buy again at a lower price. Now it's at 3600 and I'm still not selling. There are only two scenarios when I would sell Amazon. One when the reason for investing changes and two if it causes me to lose sleep because Amazon has become a large part of my overall portfolio. And number five it's better to be lucky than good. Several things have to come together for an investment to work. If I had not become an Amazon Prime Member In 2011, I would have not known firsthand how great Amazon is. Or if I had kept listening to the so called experts, I would not have invested in Amazon. Or if I had sold when the stock doubled, I would have missed out on a much more significant gain in the future. 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. You just listened to the post titled 5 Lessons I Learned from Investment in Amazon Stock by Mr. Finer of MrFiner.com.

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[Mr. Finer]

If you've been listening for a while, you know that I don't buy Individual stocks Just reading this article stressed me out. 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. Now, I don't think there's anything particularly wrong with stock picking. In fact, I've heard of investing clubs where members pick stocks together and share the burden of studying the various companies they're considering investing in. As someone who reads and talks about money every day, it might surprise you that I'm not interested in reading earnings reports and SEC filings all day long to inform my stock picking. I just don't want to work that hard when it comes to investing. I prefer a simple passive strategy of set it and forget it, buy and hold. It may be possible to do very well with individual stock picking, but it would require a high interest level and time to study various company movements. If you're like me and you want to learn a simple way to invest, my favorite book on the topic is called the Simple Path to Wealth by J.L. collins and that will do it for today. Have a great day and start to your weekend. If you're listening in real time and I'll be back here over the weekend where your optimal life awaits.