Should you put all of your money into Amazon? Find out what to consider in this week's Arista Advice.
Hello, welcome to Arista Advice. My name is Tyler Hunt.
Today I'm responding to the question I've gotten quite a bit about "Let's put all our money into Amazon. It's going to dominate forever." I've heard that a variety of different ways.
On the screen you're looking at a chart now of other companies that were once viewed as like an Amazon dominant. For example, you'll see AT&T was the top leader from the 30s to the 60s and then they're no longer on the list now.
You can see companies like Exxon or General Electric had dominated that are no longer in the top 10 as well.
This top 10 is interesting how it changes. You'll probably notice that these companies don't last as dominant forever, and they eventually lose. Can Amazon sustain their dominance and maintain their growth? Historically, it has not been done. The companies that were once viewed as unstoppable dwindled at some point.
As a takeaway: Don't put all your eggs in one basket. Maintain a diversified portfolio.
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