4 Diversification Strategies Bezos Uses in His Personal Portfolio You Need To Try Now
Written by
Andrew Lisa
Edited by
Amber Barkley
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Consumer spending accounts for roughly 70% of America’s GDP, and in 1994, Jeff Bezos changed the way Americans consume. Amazon started as an online bookstore and blossomed into a $1.9 trillion juggernaut that is a dominant staple of American culture and industry.
According to Forbes, his success has earned him a nearly $200 billion net worth — but Amazon is hardly the only arrow in Bezos’ financial quiver.Â
Bezos Expeditions, his private investment office, chronicles a vast and varied patchwork of investments — and within the Series A, seed and venture filings lies a master class in portfolio diversification. Thoughtful asset allocation is one of the hallmarks of successful investing, and you can apply the following lessons from Jeff Bezos’ holdings to diversify your own investment portfolio.
Invest In Your Own Businesses
An often-cited 2022 study from Zippia shows that roughly 88% of millionaires are self-made entrepreneurs. They didn’t inherit their wealth. They built or acquired businesses that generated revenue and shared in the profits until they reached seven figures or more.
For Bezos, it was much more, but no matter how many zeroes your net worth contains, the point remains that businesses are tax-advantaged, revenue-generating, appreciating assets that their owners control.
Bezos built his empire on the success of his e-commerce platform Amazon, but he also founded the aerospace company Blue Origin and bought the Washington Post, bringing rich diversity to his portfolio through his entrepreneurial endeavors alone.
Micro-Diversify Within Specific Sectors and Industries
Diversification means branching out to different sectors, but savvy investors get even more granular by diversifying within sectors and even specific industries.
For example, Bezos owns the Washington Post but is also heavily invested in Business Insider, a digital-only business and financial news publication.
In the AI space, he owns large stakes in Physical Intelligence, WhyLabs and Skild AI.
In the biotech/biopharmaceutical sphere, he has large ownership shares of companies like Juno Therapeutics — now a part of Bristol-Myers Squibb — Insitro, Denali Therapeutics and Sana Biotechnology.
Invest In Critical Industries, Technologies and Services
Blue Origin is an aerospace company that has won billions in government contracts to build and implement rockets, satellites, landers and other critical devices and services for organizations like NASA and the Department of Defense.
By investing in technologies and processes that are essential to governments, corporations and other deep-pocketed entities, Bezos has future-proofed his portfolio — but Blue Origin isn’t his only mission-critical bet.
Bezos is also a key investor in the defense technology company Anduri and the AI-robotics firm Cobot.
Invest In Disruption
Jeff Bezos might be the modern era’s ultimate disruptor. His online bookstore grew into the world’s largest e-commerce platform, which annihilated mall culture and toppled giants like Sears — and he brings that philosophy into his personal portfolio.
Among his holdings are Airbnb, which turned the real estate rental industry on its head; Uber, which rendered the old-school taxi model a 20th-century relic; and X, formerly known as Twitter, which revolutionized social media.
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