Investors understand that the shares they hold are stakes in that underlying company’s success or failure. Nevertheless, investors also understand that the company’s success or failure — or potential — isn’t always reflected in that stock’s price. The trick is just knowing when and to what degree that disconnect exists.
That’s something Amazon (AMZN -1.72%) founder Jeff Bezos was forced to accept early on. Although he took his e-commerce giant public in 1997 — in the midst of dot-com mania — the dot-com crash of 2000 crushed this young stock. All told, AMZN stock fell from a peak of $113 to a low near $6 during this turbulent period, shaking investors’ confidence in the fledgling company.
Jeff Bezos. Image source: Amazon.com…
