You probably already know Amazon (NASDAQ: AMZN) has been one of the modern era's most rewarding investments. And rightfully so.
Back in the mid-1990s, founder Jeff Bezos spotted an underappreciated opportunity in the then-budding worldwide web, and acted on it. The rest, as they say, is history. The company's annual revenue has grown from less than $16 million back in 1996 to $638 billion last year.
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But exactly how rewarding has its stock been? Only a relatable example can put things in their proper perspective. To this end, a $10,000 investment in Amazon stock back in early 2000 would be worth $627,000 at the time of this writing. That's nearly a 6,300% return on the position over the course of the 25 years in question.
There's an important footnote to add to this big gain, however. That is, while Amazon became an enormous winner in a relatively short period of time, this isn't the norm. It's an exception to the norm.
Even the strongest of young start-ups in the right place at the right time typically don't perform this well. Some of the technology companies that were touted just as well as Amazon was back in the 1990s, in fact, are no longer around today.
The key to Amazon's initial survival and eventual thriving is also worth highlighting. That's the fact that the company was plugged directly into the growth of what ended up serving as the basis of a sociocultural revolution: the internet. Although the worldwide web obviously can't be invented again, investors on the hunt for the "next Amazon" may want to keep their eyes peeled for something that's apt to be just as transformative (not unlike artificial intelligence, or AI).
Of course, as was the case with Amazon back in the late 1990s and early 2000s, the world's next game-changing industry won't be obvious in its infancy. You'll need to take something of a leap of faith if you're hoping to score a similar win. That's easier said than done.
Before you buy stock in Amazon, consider this:
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.