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Financial Articles from Hefren-Tillotson

The Incredible Rise (and many falls) of Amazon.com Stock

May 30, 2017

This month marks the twentieth anniversary of the Amazon.com (AMZN) initial public offering (IPO) in May of 1997. Just $1 invested on the IPO date would be $489 today, making Amazon one of the most dominant stocks of the past two decades (by comparison, $1 invested in the S&P 500 would be worth $3 today).

Even so, we suspect that very few investors have owned Amazon from inception until today. The stock has suffered declines of nearly 40% per year on average (chart), making a buy-and-hold strategy extremely difficult.

Amazons experience highlights the trade-off investors face between risk and reward. Even the most successful investments are bound to test the patience and faith of investors.

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