Benzinga - by Rounak Jain, Benzinga Staff Writer.
Amazon.com Inc. (NASDAQ:AMZN) founder Jeff Bezos encouraged his siblings Mark and Christina to invest $10,000 each in the company in the mid-1990s. Little did any of them know at the time that this would make them billionaires one day.
What Happened: In 1996, Bezos’ siblings each bought 30,000 shares of Amazon for $10,000. Jeff had one condition, though: if Amazon failed and the investment turned sour, he still wanted to be invited to his siblings' homes for Thanksgiving, according to the book “The Everything Store: Jeff Bezos and the Age of Amazon.”
Luckily for Bezos and his siblings, Amazon flourished and turned them all into billionaires. That small $10,000 investment back in 1996 is now worth $1.30 billion, assuming that neither of the Bezos siblings sold any shares so far.
This makes for a staggering gain of 13,025,889%.
According to an analysis by Bloomberg, Mark and Christina Bezos had an estimated investment of $640 million each in July 2018. Based on Amazon's current stock price and accounting for stock splits, bonus shares, and other corporate action, the Bezos siblings' stakes are now worth $1.30 billion.
Bezos’ vision for Amazon, despite the internet’s limited use in the mid-90s, led to the company’s founding in July 1994. He managed to convince his family, despite the high risk, to invest in his venture.
The company went public on May 15, 1997, at $18 per share, and under Bezos’ leadership, it has grown to a market cap of $1.86 trillion.
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Mark and Christina Bezos have maintained low public profiles. Mark pursued a successful career in advertising and philanthropy, while Christina focused on family and philanthropy.
This investment by Bezos’ siblings is a testament to the potential of visionary entrepreneurship and the digital economy. It also highlights the impact of strategic risk-taking in the rapidly evolving world of technology and commerce.
Jeff Bezos was recognized as Time Magazine’s Person of the Year in 1999 for his visionary leadership in the e-commerce industry. His net worth is currently estimated at $204 billion, making him the third-richest person globally.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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