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Amazon.com
Acquired
The Weighted Average Cost of Capital (WACC)
Bezos made a presentation at Amazon in 1999, advocating for exactly the strategy that they were running. It's really about the weighted average cost of capital, the WACC or WAC. If you have all the dollars from selling goods, not just the margin dollars, and you don't have to pay your suppliers for like a month after the customer bought it from you,. Or two months or three months or four months. That cash is effectively free for you to use. So if you have a competitor who's financing the growth with debt and you can do it purely with those profit dollars, well, you can beat them in the long term.
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