1/ In honor of Bezos's retirement announcement this week, I wanted to systematically review his shareholder letters, something I've never done methodically.

Let's start with the first '97 letter that introduced the world to $AMZN's "Day 1" philosophy.

https://s2.q4cdn.com/299287126/files/doc_financials/annual/Shareholderletter97.pdf
2/ I could literally highlight the entire letter, but we have to cover the "Day 1" mantra. The first key to Bezos's success was that he recognized the immense opportunity the internet represented and that the world was just at the very beginning of this technological phenomenon.
3/ Bezos knew that building out the infrastructure needed to make e-commerce work would require a lot of capital, making it a risky venture.

But he also knew that b/c e-commerce was just beginning, customers were forming new, possibly sticky relationships w/merchants online.
3/ Bezos knew that building out the infrastructure needed to make e-commerce work would require a lot of capital, making it a risky venture.But he also knew that b/c e-commerce was just beginning, customers were forming new, possibly sticky relationships w/merchants online.
3/ Bezos knew that building out the infrastructure needed to make e-commerce work would require a lot of capital, making it a risky venture.But he also knew that b/c e-commerce was just beginning, customers were forming new, possibly sticky relationships w/merchants online.
4/ Bezos focused relentlessly on long-term growth, rather than short-term profits, even from this first letter. His priority was market leadership: customers, revenue, customer repeat purchases, and brand.

If you put that stuff first, profits and everything else would follow.
4/ Bezos focused relentlessly on long-term growth, rather than short-term profits, even from this first letter. His priority was market leadership: customers, revenue, customer repeat purchases, and brand.If you put that stuff first, profits and everything else would follow.
4/ Bezos focused relentlessly on long-term growth, rather than short-term profits, even from this first letter. His priority was market leadership: customers, revenue, customer repeat purchases, and brand.If you put that stuff first, profits and everything else would follow.
5/ B/c $AMZN would always prioritize long-term over short-term, it was going to make different decisions than other cos. That starts w/ customer obsession, but includes things like not worrying about GAAP quarterly earnings or Wall St. expectations.
5/ B/c $AMZN would always prioritize long-term over short-term, it was going to make different decisions than other cos. That starts w/ customer obsession, but includes things like not worrying about GAAP quarterly earnings or Wall St. expectations.
5/ B/c $AMZN would always prioritize long-term over short-term, it was going to make different decisions than other cos. That starts w/ customer obsession, but includes things like not worrying about GAAP quarterly earnings or Wall St. expectations.
5/ B/c $AMZN would always prioritize long-term over short-term, it was going to make different decisions than other cos. That starts w/ customer obsession, but includes things like not worrying about GAAP quarterly earnings or Wall St. expectations.
5/ B/c $AMZN would always prioritize long-term over short-term, it was going to make different decisions than other cos. That starts w/ customer obsession, but includes things like not worrying about GAAP quarterly earnings or Wall St. expectations.
6/ I think the other great nugget in this first letter was how Bezos thought about hiring and share-based compensation. He intentionally used SBC to get employees thinking w/ an owner's mindset and outlined the incredibly high standards he would hold employees too.
6/ I think the other great nugget in this first letter was how Bezos thought about hiring and share-based compensation. He intentionally used SBC to get employees thinking w/ an owner's mindset and outlined the incredibly high standards he would hold employees too.
6/ I think the other great nugget in this first letter was how Bezos thought about hiring and share-based compensation. He intentionally used SBC to get employees thinking w/ an owner's mindset and outlined the incredibly high standards he would hold employees too.
7/ It's easy to talk abt customer obsession, but Bezos thought long and hard about what that meant and what $AMZN could offer customers they couldn't get anywhere else. In '97 that didn't mean speed, but discount prices and great selection.

So he doubled down on those qualities.
8/ So many of these themes you see over and over again in Bezos's letters: customer obsession, a long-term mindset, and "Day 1."

Next time we'll review Bezos's 1998 shareholder letter.
You can follow @Matt_Cochrane7.
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