In the January issue of Canadian Money Saver magazine, I contributed an article where I apply some Second Level thinking principles in my evaluation of Amazon.
If we were to look at Amazon from a 1st level thinking perspective, the conventional thinking behind buying Amazon is that they are disrupting retail. Any space Amazon enters, be it grocery, streaming, pharmaceutical drugs or diapers, is met with fear and doom by the existing players. 1st level thinking would tell us that in the future we will shop at Amazon only.
I wrote about 2nd level thinking in a previous issue, which involves looking at potential investments with a more critical and often contrarian context. I thought I would put that into practice with a dive into a stock that often takes up a lot of oxygen whenever and wherever I’m talking about investing: Amazon. You can read the article here.