The Profitable Path of Being Unprofitable

Jeff Bezos' candid acknowledgment of Amazon's unprofitability demonstrates the power of transparent leadership and unwavering conviction.

His ability to laugh at Amazon's financial situation disarmed critics while his commitment to "investing in the future" signaled his extraordinary vision.

Here's more about what he said.

The Conversation

In 1999, Jeff Bezos was asked this:

"The company's never made a profit?"

This was his response, and it was great:

"That's right. Seems like a new math, doesn't it? There are a whole series of Doonesbury cartoons about this.

This is not a new phenomenon.

We are a famously unprofitable company.

And we are investing in the future. Which isn't unusual. Companies have done this before.

What's a little surprising about Amazon.com is the scale which we're doing it, we're doing it in a big way."

Watch the clip of his interview here.

A Reminder

This reminded me of 2 things:

1. Jeff's response is great because he laughs and makes jokes about it (the phrase "We are a famously unprofitable company" is gold), states that it's not uncommon practice BUT differentiates Amazon by the long-term thinking and outsized bets. No one can laugh at you when you laugh at yourself first.
2. Jeff says that inventing and pioneering requires a willingness to be misunderstood for long periods of time. That's where long-term thinking and "Be stubborn on the vision but flexible on the details" comes into play.

Conclusion

The lesson for today's builders is clear: short-term profitability and immediate validation often stand at odds with transformative innovation.

By embracing self-awareness, maintaining conviction in your vision while adapting your approach, and having the courage to be misunderstood, you create space for the kind of long-term thinking that changes industries and builds lasting value.