Its not just Amazon, the same line of thought applies to companies like Apple, Google, Tesla, Netflix, etc.
This has been a theme of ours for a long time. You can own the greatest stocks in the world, but what are the odds you will be able to withstand the horrific downdrafts they all occasionally must suffer? I bet you sold your Apple and Google a long time ago.
We tend to focus on Amazon’s huge 38,000% run, while simultaneously ignoring drawdowns as large as 95%. How many people have the constitution (aka, Who in their right minds) to ride out that sort of volatility?
AMZN: Returns vs Drawdowns
Source: Irrelevant Investor
The world’s greatest stock picker? Bet you sold Apple and Google a long time ago.
Washington Post, October 4, 2014