I've finally decided to become an Amazon shareholder after being a fan and user of the company for so long. I made the stock a 5% position in my portfolio at an average price of around $93 a share. The company's earning and free cash flow is quite volatile which makes it quite tricky to value based on the normal metrics I use.
I don't have a super sophisticated approach with this purchase other than
I don't have a super sophisticated approach with this purchase other than
- I spend a lot of money each month on Amazon
- The company is at the lower end of its valuation range on a Price to Sales basis
- I believe the company will continue to grow and be generating a lot more revenue in 10-years time. Current revenue is $500B
Stock Purchase strategy
Seeing as it is currently a 5% position, I would be happy to make two more purchases of 2.5% chunks should the price drop further. First chunk would be deployed should the price drop to $80, second chunk if it got to $70. Otherwise I am happy to hold the 5%.
Current Portfolio Weightings
Cash - 38.5%
Tesla - 14.5%
Alphabet - 9.0%
Meta - 6.7%
Gold - 6.0%
Berkshire - 5.5%
Bitcoin - 5.3%
Amazon - 5.0%
Apple - 4.5%
Salesforce - 2.5%
Ethereum - 2.5%