“The most difficult thing is the decision to act. The rest is merely tenacity.”

— Amelia Earhart

Spring in Ontario reminds us that progress is rarely linear. The ice seems to go out slowly, then all at once it’s gone. Markets, much like the season, rarely announce their turning points in advance.

A Company in Focus: Amazon.com

Amazon.com is a well-known example of a business that has evolved far beyond its original label as a ‘Consumer Discretionary’ stock. Once an online bookseller, Amazon now operates across e-commerce, cloud infrastructure, artificial intelligence, satellite broadband, autonomous delivery, digital advertising, pharmacy, and grocery. The traditional classification does not fully capture the company’s scope.

This breadth means Amazon is not simply a participant in a single trend, but holds positions across several sectors that may shape the next decade. Its continued expansion and reinvestment in new areas have enabled it to adapt and grow. Notably, the company’s cloud computing business (AWS) and its developing AI infrastructure platform are still considered to be in the early stages of their potential.

An Interesting Read

Amazon CEO Andy Jassy recently released his annual letter to shareholders. In the tradition of Warren Buffett’s storied addresses, Jassy uses the format to provide insight into the company’s philosophy, an honest accounting of successes and challenges, and a look at future directions. This year’s edition offers particularly interesting perspectives.

The letter begins with Jassy’s personal journey before expanding to the company’s broader story. The AWS division, for example, did not follow a straight path. The Alexa product underwent significant changes to remain relevant in the age of generative AI. Amazon’s grocery ambitions required years of experimentation before finding the right approach. Underlying all of this is a culture that learns from setbacks and keeps moving forward.

The AI section is especially noteworthy. Jassy describes how AWS is positioned not just to participate in the AI wave, but to help define it. Amazon’s chip business, cloud infrastructure, and a recently announced partnership with OpenAI place it at the center of technological development in this area. The company sees itself as early in the AI investment cycle, with significant opportunities ahead.

A Line That Resonated

Jassy writes:

“Most long-term endeavors do not follow a linear straight line, up and to the right. Progress jumps around; it will zig up, then sometimes stall, or zag down, or force you back to the starting line. Sometimes, it feels like you’re running in circles. But the path is rarely straight.”

This observation is familiar to anyone who has observed markets through different cycles. From the onset of COVID, through rapid changes in interest rates, and recent geopolitical tensions affecting energy markets and supply chains — the path has not been straightforward. Business values fluctuate, and markets that track them fluctuate even more. Yet, over time, the broader trend has historically been upward.

This is not a guarantee about any particular company or year, but rather an observation about the historical outcomes of patient, fundamentally-grounded investing — and a reminder of the value in building portfolios designed to weather both the ups and downs.

Amazon, in its own way, exemplifies this approach. Its ability to adapt and learn from challenges has contributed to its resilience.

A Final Thought

Markets will continue to test patience, as they always have. What remains important is the understanding that long-term investing has historically rewarded those who endure short-term volatility. Owning shares in resilient businesses has been one of the most established ways to grow and protect wealth over time.

As always, effective investing and planning are grounded in ongoing conversations and thoughtful consideration.

Warm regards,

Moore-Miller Investment Group