Re: Why Amazon is Worth $1 Trillion
They are worth 1 trillion because of their stock price. The stock price is what it is because there are people willing to invest their money in the company. As soon as people start realizing that Amazon is not that worthy of their money, they will start pulling out and seeking new investments and that will lead to Amazon's stock price going down.
Jeff Bezos is not really worth 180 billion dollars. This net worth is theoretical. If Amazon's stock price is slashed by 50%, Jeff's net worth will also be. This also applies to Bill Gates, Mark Zuckerberg or any owner of a publicly traded company (supposing they're fully invested in their own company). The Koch industries for example is a privately held company, the Koch brothers are seriously wealthy and exert excessive amounts of political power as well, Jeff Bezos could only dream of being that much wealthy and powerful, but that may change in the future... who knows!
Having a major company and holding it privately is a way better option than making it publicly traded, but there are very few people who could pull this off.
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