GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
Some of them went bust, but others have returned his investment many times over.
He was one of the first investors in leading companies like Google, Twitter, Airbnb and Uber.
Bezos has shifted his attention to AI robotics as he seeks new opportunities to multiply his money.
The Amazon founderrecently invested in Physical Intelligence, a robot startup thats located in San Francisco.
Investors canlearn valuable lessonsfrom Bezos venture capital bets.
These are some of the highlights.
Pay Attention to Trends
Artificial intelligence has been front-and-center for a few years.
Nvidias ascent to a $3 trillion market cap put the industry on many investors radars.
Many AI stocks have performed well over the past 2 to 3 years, especially chipmakers.
Thats some important context for Bezos pivot intoAI robotic investments.
Robots and self-driving cars are two of the many possibilities that AI enables.
Bezos has seemingly recognized the opportunity, and made a bunch of investments in the industry.
Google, Twitter and Airbnb are some of his most notable early investments.
The investments that worked when Bezos was getting started dont have the same long-term potential right now.
That is likely part of the reason Bezos is shifting his attention to AI startups.
Retail investors who cant access venture capital opportunities can look at small-cap companies in the stock market.
While investing in these stocks requires more research, they can produce outsized returns for patient investors.
Thats why some people talk about finding the next Nvidia and prioritizing companies withsmall market caps.
Investors should verify if a company is reporting rising revenue and net income growth rates.
Thats a good sign of an asset that can outperform the stock market.
Other variables like a stocks valuation, industry and long-term catalysts also impact overall performance.
Jeff Bezos only made strong returns on his early investments because he had to hold them for many years.
Some investors panic during market uncertainty and sell off when the broader market declines.
Selling winners at low prices isnt a recipe for long-term success.
If you feel like your portfolio is too risky, you may want to trim it.
However, you shouldnt view your portfolio as too risky just because of a correction.
Diversify Your Holdings
Jeff Bezos hasnt put all of his eggs in one basket.
He spreads his venture capital funds across many opportunities.
Some of the companies he invests in end up going bankrupt.
Retail investors can follow this approach by investing in ETFs and diversifying into individual stocks.
More From GOBankingRates
Share This Article:
