Jeff Bezos is among the richest people in the world, and he did it all through innovation, smart bets, and a focus on long-term growth. He is perhaps best known as the founder of Amazon, but his rise to great riches did not happen overnight. They took a leap of faith with their first online bookstore, coming from a background in finance. Bezos expanded Amazon to include other retail sectors over the years, introduced profitable ventures in cloud computing and space exploration, and expanded plans to improve customer experience. Here’s how Jeff Bezos made his money, the industries he bet on and the risks he took along the way.

Jeff Bezos did not become an entrepreneur immediately. He graduated from Princeton University, where he earned degrees in electrical engineering and computer science, and worked on Wall Street. He worked in finance, technology and business operations for firms including Fitel, Bankers Trust and D. E. Shaw & Co. His position at D. E. Shaw was especially impactful as he was a senior vice president at a young age there and learned how businesses scaled.

And while at D. E. Shaw, he learned about the rapid growth of the internet and the potential of e-commerce. He saw an opportunity, and took the chance to leave his solid job and pursue an Internet business idea that became Amazon.

Jeff Bezos Took A Risk By Starting An Online Bookstore Out Of His Garage

In 1994 Jeff Bezos launched Amazon in his garage in Seattle. He selected books for the first product category because they were readily available and easy to ship. He and a handful of employees packed and shipped books themselves, making sure that each customer order was given special care. The company’s website went live in 1995, at which point the first customers came from all 50 U.S. states and several other countries within the first month.

Amazon started out being successful because it focused on customers. Bezos focused on low prices, a remarkable selection and the ease of shopping. Rather than prioritizing short-term gains, he poured revenues into bolstering the company’s infrastructure and enhancing logistics, enabling Amazon to expand exponentially.

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Jeff Bezos Focused On Long-Term Growth Instead Of Short-Term Profits In The Early Years

Whereas most companies would have wanted surging revenues to swell their short-term profits, Bezos brokered the deal on the condition that revenues could be reinvested into the expansion of Amazon. The company had low or no profits reported every quarter for its early years, as it had been investing money in the technology, warehouses and increased customer service. If Amazon could continue making such long-term investments, Bezos theorized, it would eventually become the leader in online retailing.

Because Amazon was selling things other than books electronics, clothing, household goods and so on, and this strategy worked. Among the innovations that enabled the company to differentiate itself in the crowded online marketplace were customer reviews and one-click ordering.

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Jeff Bezos Diversified His Wealth By Expanding Amazon Beyond Retail And Into Cloud Computing

Although Amazon grew into a powerhouse of e-commerce, Bezos realized that the company would hit a ceiling if it relied only on online retail. He was credited with pushing Amazon into new industries in the early 2000s, one of the most successful being cloud computing.

The service, now known as Amazon Web Services (AWS), was launched in 2006 and provided businesses with services such as cloud computing, storage, computing power and more. AWS grew rapidly as a source of income for Amazon, with both small startups and large enterprises using AWS to run their operations. Now AWS is a giant slice of Amazon’s earnings, and has enabled Bezos to greatly increase his wealth.

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For example, beyond AWS, Bezos diversified into media with the beginning of The Washington Post in 2013 and into streaming, via Amazon Prime Video. These strategic expansions further solidified Amazon’s stake in various industries while boosting Bezos’s growing fortune.

Customer obsession has long been one of Bezos’s governing principles. He devised the motto, “If we do a good job for our customers we will also do a good job for our shareholders.” That meant fast shipping, reasonable pricing and a seamless shopping experience.

Amazon did this by investing heavily in warehouses, automation and artificial intelligence. This was also the time when Amazon Prime, a membership service that includes free shipping and premium content, was introduced, which added even more customer loyalty and income. By using this blueprint, Amazon managed to pull ahead of its rivals and become one of the world’s most valuable companies.

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Jeff Bezos Strengthened His Financial Position By Investing In Space Exploration And Other Ventures

Bezos has long had a fascination with space and set up his private aerospace company, Blue Origin, back in 2000. He paid for Blue Origin with his own wealth, with the goal of making space travel cheaper and easier. The company has for years developed reusable rockets and furthered a lot of NASA space tech.

Other investments, including his stake in Blue Origin, have helped as well. Though Amazon continues to be his biggest earner, these side hustles have provided some diversification in the income-producing assets he owns and established him across various sectors.

Jeff Bezos Continued To Increase His Wealth Even After Stepping Down As Amazon Ceo

Bezos stepped down as Amazon’s chief executive in 2021, passing leadership to Andy Jassy. Still, he held on to a sizable stake in Amazon and continued to reap the financial benefits of the company’s success. His wealth also grew with stock appreciation, dividends and his investments in a wide range of industries.

Transitioning to Blue Origin and philanthropy have kept Bezos relevant not only in business but also in space exploration. His investments are still sound, his risk-taking sensibility is still risk-averse, and he has continued to explore new avenues even after stepping down as CEO of his own company.