Quote: “Profits are what you get when you run out of ideas”
Who said it/Author: Jeff Bezos
Meaning / What does it mean:
Jeff Bezos believes in the long term and he believes that cash flow should be reinvested into the business. If Amazon were to rest on its laurels and not reinvest its profits into exploring other new businesses like Amazon Web Services (AWS) or Kindle, they would have shown a profit. But due to the fact that Jeff Bezos has many ideas about how to better utilize the money for the long-term, he believes profits should be reinvested instead of just keeping it in the bank (like Apple, who has 250 billion of cash). That’s why he believes that companies only show profits when they run out of ideas. This is because if they had good ideas, they would have reinvested the cash instead of showing a profit.