Amazon.com, Inc. (AMZN)’s Domination: Why You Should Hold This Company for Life

As for those “other retailers,” they’re trying to figure out if there even is a way to compete with this madness. Not only that, but since Amazon is eeking out such a low profit, no one is even interested in competing for that market.

Professional investors, such as the Motley Fool (which I know holds a large amount of shares of Amazon, if their constant emails are any indicator), understand this concept. They’re ready to stick it out with Bezos for the long run because in the end they’ll end up controlling the entire market, and all colossal profits such dominance would entail.

Endless Expansion: 21st century style

Every day, we get news of Amazon doing something or other in order to grow or expand, whether it be entering new markets or building up it’s forces. It opened up Amazon Prime in Canada, and it’s preparing to open up a “secondary market for digital products” (think Apple’s iTunes combined with eBay, then add as many digital products you can think of and more). It’s AmazonFresh grocery business is expanding into California, offering up a model that might one day put grocery stores out of business like it is doing to big-box retailers.

Even if the company loses money here and there, that has no effect on the bottom line. Amazon customers, already loyal and very pleased by the service and low costs, have no incentive to change to another retailer. And investors, so long as they’re kept satisfied by unending growth, have no incentive to sell their shares.

So long as this is kept up, anyone who holds shares of Amazon (that includes Bezos, by the way, since he owns around 20% of the company) is going to end up a very wealthy and happy individual.

The article Amazon’s Domination: Why You Should Hold This Company for Life originally appeared on Fool.com and is written by Carlos Roa.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.