Warren Buffett and Jeff Bezos need no introduction, but investors may be surprised to see how much these two have in common. While Bezos has long been criticized for keeping a tight leash on Amazon.com's earnings, opting instead to pour the company's cash flow back into future growth, Warren Buffett and Charlie Munger have long supported companies with strong capital return to shareholders, whether in the form of dividend payments or share repurchases.
However, in a recent interview with the Harvard Business Review, Bezos put his investing chops on display, even quoting Buffett directly. He revealed that while Amazon's stock price may seem expensive, there is a method at work, as he's directing his company to build wealth for shareholders exactly as investors should hope.
The Fool's Austin Smith has more in the following video.
If you're still scared by Amazon's nosebleed multiple, have no fear. The Motley Fool's chief investment officer has selected his No. 1 stock for the next year, and it's far cheaper than Amazon today. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.
The article Is Jeff Bezos the Next Warren Buffett? originally appeared on Fool.com.Austin Smith has no position in any stocks mentioned. Jeremy Phillips owns shares of Amazon.com. The Motley Fool recommends and owns shares of Amazon.com and Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.