We had held off using a posture in Amazon (NASDAQ:AMZN) mostly due to issues about the firm’s trim margins. But in 2020, we observed its main margins practically double as far more individuals shopped on line, which in change led to bigger utilization and route density within just Amazon’s shipping network. In addition, Amazon’s promotion small business, which represents a compact part of its all round revenue, has been rising immediately. Promoting could grow to be a 3rd leg of growth for the corporation together with e-commerce and Amazon World wide web Expert services. In quick, Amazon checks all of our boxes — it has a solid management team, terrific progress prospective clients, and a strong competitive edge. And last year, we initiated our posture at an intriguing valuation.
From Mairs and Energy (Trades, Portfolio) Progress Fund’s fourth-quarter 2020 letter.
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Sydnee Gatewood
I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech College. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Observe me on Twitter! @gurusydneerg