♪ BEZOS: ALL OF MY BEST DECISIONS IN BUSINESS AND IN LIFE HAVE BEEN MADE WITH HEART, INTUITION, GUTS.

RUBENSTEIN: WHO CAME UP WITH THE IDEA OF PRIME?

WHAT HAPPENS WHEN YOU OFFER A FREE ALL-YOU-CAN-EAT BUFFET?

WHO SHOWS UP TO THE BUFFET FIRST?

THE HEAVY EATERS.

THERE ARE SOME PEOPLE WHO CRITICIZE SOME THINGS THAT THE "WASHINGTON POST" SAYS.

I HAVE NO IDEA WHAT YOU'RE TALKING ABOUT.

BUT HAVE YOU EVER HAD A CREDIT CARD DENIED?

HAS THAT EVER HAPPENED?

BEZOS: I HAVE.

I'VE HAD MY CREDIT CARD DENIED.

WHAT DO YOU SAY WHEN THEY-- YOU SAY, "DON'T YOU KNOW WHO I AM"?

BEZOS: I GIVE 'EM ANOTHER CREDIT CARD.

[LAUGHTER] I SAY, "HERE TRY THIS ONE."

WOMAN: WOULD YOU FIX YOUR TIE PLEASE?

RUBENSTEIN: PEOPLE WOULDN'T RECOGNIZE ME IF MY TIE WAS FIXED, BUT OK. JUST LEAVE IT THIS WAY.

ALL RIGHT.

I DON'T CONSIDER MYSELF A JOURNALIST.

NOBODY ELSE WOULD CONSIDER MYSELF A JOURNALIST.

I BEGAN TO TAKE ON THE LIFE OF BEING AN INTERVIEWER, EVEN THOUGH I HAVE A DAY JOB OF RUNNING A PRIVATE EQUITY FIRM.

HOW DO YOU DEFINE LEADERSHIP?

WHAT IS IT THAT MAKES SOMEBODY TICK?

YOUR STOCK IS ACTUALLY UP 70% THIS YEAR.

IS THERE ONE THING THAT YOU THINK IS RESPONSIBLE FOR THAT OR SEVERAL THINGS?

BECAUSE 70% IS PRETTY GOOD.

[LAUGHTER] BEZOS: NOW, I HAVE BEEN LECTURING.

WE HAVE ALL-HANDS MEETINGS AT AMAZON.

AND FOR 20 YEARS, EVER SINCE WE'VE BEEN-- 21 YEARS NOW, IN 1997-- AT ALMOST EVERY ALL-HANDS MEETING, I SAY, "LOOK, "WHEN THE STOCK IS UP 30% IN A MONTH, DON'T FEEL 30% SMARTER "BECAUSE WHEN THE STOCK IS DOWN 30% IN A MONTH, IT'S NOT GOING TO FEEL SO GOOD TO FEEL 30% DUMBER."

AND THAT'S WHAT HAPPENS.

NEVER SPEND ANY TIME THINKING ABOUT THE DAILY STOCK PRICE.

I DON'T.

RUBENSTEIN: OK.

SO AS A RESULT OF GOING UP 70% THIS YEAR, YOU HAVE BECOME THE WEALTHIEST MAN IN THE WORLD.

IS THAT A TITLE THAT YOU REALLY WANTED OR NOT-- [LAUGHTER] RUBENSTEIN: IS IT A BURDEN?

I CAN ASSURE YOU, I HAVE NEVER SOUGHT THAT TITLE.

AND IT WAS FINE BEING THE SECOND-WEALTHIEST PERSON IN THE WORLD, THAT ACTUALLY WORKED FINE.

IT'S NOT--IT ISN'T A-- [LAUGHTER] I WOULD SAY IT'S SOMETHING PEOPLE NATURALLY ARE CURIOUS ABOUT.

YOU KNOW, IT'S A KIND OF AN INTERESTING CURIOSITY, BUT IT'S NOT-- I WOULD MUCH RATHER IF THEY SAID LIKE, YOU KNOW, "INVENTOR JEFF BEZOS" OR "ENTREPRENEUR JEFF BEZOS" OR YOU KNOW, "FATHER JEFF BEZOS."

THOSE KINDS OF THINGS ARE MUCH MORE MEANINGFUL TO ME.

AND YOU KNOW, IT'S AN OUTPUT MEASURE THAT IF YOU LOOK AT THE FINANCIAL SUCCESS OF AMAZON AND THE STOCK, I OWN 16% OF AMAZON.

AMAZON'S WORTH ROUGHLY A TRILLION DOLLARS.

THAT MEANS THAT WHAT WE HAVE BUILT OVER 20 YEARS, WE HAVE BUILT $840 BILLION OF WEALTH FOR OTHER PEOPLE, AND THAT'S GREAT, THAT'S HOW IT SHOULD BE.

YOU KNOW, I BELIEVE SO POWERFULLY IN THE ABILITY OF ENTREPRENEURIAL CAPITALISM AND FREE MARKETS TO SOLVE SO MANY OF THE WORLD'S PROBLEMS--NOT ALL OF THEM, BUT SO MANY OF THEM.

RUBENSTEIN: SO YOU LIVE IN WASHINGTON STATE NEAR SEATTLE, OR OUTSIDE OF SEATTLE.

NOW THE MAN WHO WAS THE RICHEST MAN FOR ABOUT 20 YEARS IS NAMED BILL GATES.

BEZOS: YEAH.

RUBENSTEIN: AND WHAT IS THE LIKELIHOOD THAT THE TWO RICHEST MEN IN THE WORLD LIVE NOT ONLY IN THE SAME COUNTRY, NOT ONLY THE SAME STATE, NOT ONLY THE SAME CITY, BUT IN THE SAME NEIGHBORHOOD?

I MEAN, IS THERE SOMETHING IN THAT NEIGHBORHOOD THAT WE SHOULD KNOW ABOUT?

AND ARE THERE ANY ARE THERE ANY MORE HOUSES FOR SALE THERE?

[LAUGHTER] BEZOS: AFTER I SAW BILL NOT TOO LONG AGO, YOU KNOW WE WERE JOKING ABOUT "THE WORLD'S RICHEST MAN" THING, AND I BASICALLY SAID THANK--YOU KNOW, I SAID "YOU'RE WELCOME."

AND HE IMMEDIATELY TURNED TO ME AND SAID "THANK YOU."

BUT NO, MEDINA IS A GREAT LITTLE-- IT'S A SUBURB OF SEATTLE AND, YOU KNOW, I DON'T THINK THERE'S ANYTHING SPECIAL IN THE WATER THERE.

YOU KNOW, I DID LOCATE AMAZON IN SEATTLE BECAUSE OF MICROSOFT.

I THOUGHT THAT THAT BIG POOL OF TECHNICAL TALENT WOULD PROVIDE A GOOD PLACE TO RECRUIT TALENTED PEOPLE FROM, AND THAT DID TURN OUT TO BE TRUE.

SO IT'S NOT A COMPLETE COINCIDENCE.

THERE'S SOME CORRELATION THERE.

YOU GO INTO A STORE, WHEN YOU WANT TO BUY SOMETHING, DO YOU HAVE TO PUT A CREDIT CARD DOWN?

YOU JUST SAY, "I'M JEFF BEZOS" AND THEY SEND YOU THE STUFF?

HOW DO YOU DO THAT?

AND DO YOU HAVE TO CARRY CASH AROUND, OR YOU CARRY ANYTHING?

BEZOS: YEAH, I DO CARRY CASH, AND I HAVE CREDIT CARDS, YEAH.

RUBENSTEIN: AND HAVE YOUR CREDIT CARD-- BEZOS: I HAVE TO SHOW MY DRIVER'S LICENSE AND YOU KNOW...

BUT HAVE YOU EVER HAD A CREDIT CARD DENIED?

HAS THAT EVER HAPPENED?

BEZOS: I HAVE.

I'VE HAD MY CREDIT CARD DENIED.

RUBENSTEIN: WHAT DO YOU SAY WHEN THEY--DO YOU SAY, "DON'T YOU KNOW WHO I AM?"

BEZOS: I GIVE 'EM ANOTHER CREDIT CARD.

[LAUGHTER] I SAY, "HERE.

TRY THIS ONE."

RUBENSTEIN: SO YOU MADE AN ANNOUNCEMENT THAT IS THE MOST SIGNIFICANT PHILANTHROPIC GIFT YOU'VE MADE IN THIS TYPE.

BEZOS: YEAH.

AUDIENCE: YEAH!

[APPLAUSE] THANK YOU.

RUBENSTEIN: THE GIFT THAT YOU'RE GIVING ESSENTIALLY YOU'RE GOING TO HAVE SOME FOR PRESCHOOL FOR CHILDREN WHO NEED PRESCHOOL, FREE PRESCHOOL.

BEZOS: YEAH, FULL TUITION PRESCHOOL, MONTESSORI INSPIRED.

I'M VERY EXCITED ABOUT THAT BECAUSE I'M GOING TO OPERATE THAT.

THAT'S GOING TO BE AN OPERATING NONPROFIT, AND WE'RE GOING TO PUT THEM IN LOW- INCOME NEIGHBORHOODS.

WE KNOW FOR A FACT THAT IF A KID FALLS BEHIND, IT'S REALLY, REALLY HARD TO CATCH UP.

AND IF YOU CAN GIVE SOMEBODY A LEG UP WHEN THEY'RE 2, 3, OR 4 YEARS OLD, BY THE TIME THEY GET TO KINDERGARTEN OR 1st GRADE, THEY'RE MUCH LESS LIKELY TO FALL BEHIND.

IT CAN STILL HAPPEN, BUT YOU'VE REALLY IMPROVED THEIR ODDS.

THE MONEY SPENT THERE IS GOING TO PAY GIGANTIC DIVIDENDS FOR DECADES.

THE OTHER PART OF YOUR GIFT WILL BE TO GIVE AWARDS OUT TO-- BEZOS: YES, AND THAT'S GONNA BE MORE TRADITIONAL GRANT-MAKING PHILANTHROPY.

SO THERE I'M GOING TO IDENTIFY, WITH THE HELP OF A TEAM, IDENTIFY AND FUND THAT AND FUND FAMILY HOMELESS SHELTERS.

RUBENSTEIN: AND THAT WILL BE-- YOU SAID YOU WOULD GIVE AN INITIAL $2 BILLION.

YOU EXPECT TO ADD TO THAT?

BEZOS: YEAH.

IT'S DAY ONE.

EVERYTHING I'VE EVER DONE HAS STARTED SMALL.

[LAUGHTER] AMAZON STARTED WITH A COUPLE OF PEOPLE, AND BLUE ORIGIN STARTED WITH 5 PEOPLE.

AND THE BUDGET OF BLUE ORIGIN WAS VERY, VERY SMALL.

NOW THE BUDGET OF BLUE ORIGIN APPROACHES A BILLION DOLLARS A YEAR, AND NEXT YEAR WILL BE MORE THAN A BILLION DOLLARS.

AND AMAZON, WHO LITERALLY WAS 10 PEOPLE, TODAY IT'S HALF A MILLION PEOPLE.

BUT IT'S HARD TO REMEMBER FOR YOU GUYS, BUT FOR ME, IT'S LIKE YESTERDAY.

I WAS DRIVING THE PACKAGES TO THE POST OFFICE MYSELF AND HOPING ONE DAY WE COULD AFFORD A FORKLIFT.

SO FOR ME, I'VE SEEN SMALL THINGS GET BIG, AND IT'S PART OF THIS DAY ONE MENTALITY.

I LIKE TREATING THINGS AS IF THEY'RE SMALL.

YOU KNOW, AMAZON, EVEN THOUGH IT IS A LARGE COMPANY, I WANT IT TO HAVE THE HEART AND SPIRIT OF A SMALL ONE.

AND SO ANYWAY, THE DAY ONE FOUNDATION IS GOING TO BE LIKE THAT.

SO WE HAVE SOME VERY SPECIFIC IDEAS OF WHAT WE WANT TO DO, BUT I BELIEVE IN THE POWER OF WANDERING.

ALL OF MY BEST DECISIONS IN BUSINESS AND IN LIFE HAVE BEEN MADE WITH HEART, INTUITION, GUTS, YOU KNOW, NOT, NOT AN ANALYSIS.

WHEN YOU CAN MAKE A DECISION WITH ANALYSIS, YOU SHOULD DO SO, BUT IT TURNS OUT IN LIFE THAT YOUR MOST IMPORTANT DECISIONS ARE ALWAYS MADE WITH INSTINCT, INTUITION, TASTE, HEART.

AND THAT'S WHAT WE'LL DO WITH THIS DAY ONE FOUNDATION, TOO.

AND THE CUSTOMER IS GOING TO BE THE CHILD.

THIS IS SO IMPORTANT BECAUSE THE SECRET SAUCE OF AMAZON, WHERE THERE ARE SEVERAL PRINCIPLES AT AMAZON, BUT THE NUMBER-ONE THING THAT HAS MADE US SUCCESSFUL BY FAR IS OBSESSIVE-COMPULSIVE FOCUS ON THE CUSTOMER AS OPPOSED TO OBSESSION OVER THE COMPETITOR.

AND I TALK SO OFTEN TO OTHER CEOs AND SOME OTHER CEOs AND ALSO FOUNDERS AND ENTREPRENEURS, AND I CAN TELL THAT EVEN THOUGH THEY'RE TALKING ABOUT CUSTOMERS, THEY'RE REALLY FOCUSING ON COMPETITORS.

AND IT IS A HUGE ADVANTAGE TO ANY COMPANY IF YOU CAN STAY FOCUSED ON YOUR CUSTOMER INSTEAD OF YOUR COMPETITOR.

SO THEN YOU HAVE TO IDENTIFY WHO IS YOUR CUSTOMER.

SO AT THE "WASHINGTON POST," FOR EXAMPLE, IS THE CUSTOMER THE PEOPLE WHO BUY ADVERTISEMENTS FROM US?

NO.

THE CUSTOMER IS THE READER.

AND IN THE SCHOOL, WHO ARE THE CUSTOMERS?

IS IT THE PARENTS?

IS IT THE TEACHERS?

NO.

IT IS THE CHILD, AND THAT'S WHAT WE'RE GOING TO DO.

WE'RE GOING TO BE OBSESSIVELY COMPULSIVELY FOCUSED ON THE CHILD.

WE'RE GOING TO BE SCIENTIFIC WHEN WE CAN BE, AND WE'RE GOING TO USE HEART AND INTUITION WHEN WE NEED TO.

WHY DID YOU BUY THE "WASHINGTON POST"?

YOU HAD NO BACKGROUND IN THAT AREA.

WHAT CONVINCED YOU TO DO THAT?

BEZOS: OK, FIRST OF ALL, I WAS NOT LOOKING FOR A NEWSPAPER.

I HAD NO INTENTION OF BUYING A NEWSPAPER, HAD NEVER THOUGHT ABOUT THE IDEA, HAD NEVER OCCURRED TO ME.

IT WAS NEVER SOMETHING--WASN'T LIKE A CHILDHOOD DREAM.

KNEW NOTHING.

AND MY FRIEND DON GRAHAM, WHO AT THAT TIME I HAD KNOWN 15 YEARS-- I KNOW HIM 20 YEARS NOW-- HE APPROACHED ME THROUGH AN INTERMEDIARY AND WANTED TO KNOW IF I WOULD BE INTERESTED IN BUYING THE "WASHINGTON POST."

AND I SENT BACK WORD THAT I WOULD NOT BECAUSE I DIDN'T REALLY KNOW ANYTHING ABOUT NEWSPAPERS.

AND DON, OVER A SERIES OF CONVERSATIONS, CONVINCED ME THAT THAT WAS UNIMPORTANT BECAUSE WE HAD--INSIDE THE "WASHINGTON POST," WE HAVE SO MUCH TALENT THAT UNDERSTANDS NEWSPAPERS.

THAT WASN'T WHAT THE PROBLEM WAS.

WHAT THEY NEEDED WAS SOMEBODY WHO HAD AN UNDERSTANDING OF THE INTERNET.

AND SO THAT WAS THE FIRST THING.

THAT'S KIND OF HOW IT GOT STARTED.

AND THEN I SO I DID SOME SOUL-SEARCHING, AND AGAIN MY DECISION-MAKING PROCESS ON SOMETHING LIKE THIS WOULD DEFINITELY BE INTUITION AND NOT ANALYSIS.

THE FINANCIAL SITUATION OF THE "WASHINGTON POST" AT THAT TIME-- THIS IS 2013-- WAS VERY UPSIDE-DOWN.

THE PROBLEM WAS A SECULAR ONE.

THE INTERNET WAS JUST ERODING ALL OF THE TRADITIONAL ADVANTAGES THAT LOCAL NEWSPAPERS HAD, ALL OF THEM.

AND I SAID, "YOU KNOW, IS THIS SOMETHING I WANT TO GET "INVOLVED IN?

"IF I'M GOING TO DO IT, I'M GOING TO PUT SOME HEART INTO IT AND SOME WORK INTO IT."

AND I DECIDED I WOULD ONLY DO THAT IF I REALLY BELIEVED IT WAS AN IMPORTANT INSTITUTION.

AND I SAID TO MYSELF, "IF THIS WERE A FINANCIALLY UPSIDE-DOWN SALTY SNACK FOOD COMPANY, THE ANSWER WOULD BE NO."

AS SOON AS I STARTED THINKING ABOUT IT THAT WAY, I WAS LIKE, "THIS IS AN IMPORTANT INSTITUTION.

"IT IS THE NEWSPAPER IN THE CAPITAL CITY OF THE MOST IMPORTANT COUNTRY IN THE WORLD."

THE "WASHINGTON POST" HAS AN INCREDIBLY IMPORTANT ROLE TO PLAY IN THIS DEMOCRACY.

THERE'S JUST NO DOUBT IN MY MIND ABOUT THAT.

[APPLAUSE] AND SO AS SOON AS I HAD PASSED THROUGH THAT GATE, I ONLY HAD ONE MORE GATE THAT I HAD TO GO THROUGH BEFORE TELLING DON "YES," AND THAT WAS I WANTED TO LOOK MYSELF, YOU KNOW BE REALLY OPEN WITH MYSELF AND LOOK IN A MIRROR AND SORT OF THINK ABOUT THE COMPANY AND BE SURE THAT I WAS OPTIMISTIC THAT IT COULD WORK.

BECAUSE, YOU KNOW, IF IT WERE HOPELESS, THAT WOULD ALSO BE NOT SOMETHING I WOULD GET INVOLVED IN.

AND THAT'S THE TRANSITION THAT WE DID [INDISTINCT] I'M PLEASED TO REPORT TO YOU THAT THE "POST" IS PROFITABLE TODAY.

THE NEWSROOM IS GROWING.

[APPLAUSE] IT'S BEEN GROWING EVERY YEAR SINCE I'VE BEEN THERE.

IT'S WORKING, AND I'M SO PROUD OF THAT TEAM.

AND I KNOW FOR A FACT WHEN I'M 80 OR LET'S SAY--I ALWAYS PROJECT MYSELF FORWARD TO AGE 80, BUT AS I GET OLDER I'M STARTING TO DO 90.

[LAUGHTER] SO I KNOW THAT WHEN I'M 90, IT'S GOING TO BE ONE OF THE THINGS I'M MOST PROUD OF IS THAT I TOOK ON THE "WASHINGTON POST" AND HELPED THEM THROUGH A VERY ROUGH TRANSITION.

SO WHEN YOU AGREED TO BUY IT, I THINK THE ASKING PRICE WAS $250 MILLION.

YOU DIDN'T NEGOTIATE.

BEZOS: NO.

DON--I ASKED HIM HOW MUCH HE WANTED.

HE SAID "250."

I SAID "FINE."

I DIDN'T NEGOTIATE WITH HIM AND I DID NO DUE DILIGENCE.

I WOULDN'T NEED TO WITH DON.

HE TOLD ME-- RUBENSTEIN: I HAVE SOMETHING I'D LIKE TO SELL.

BEZOS: HA HA HA HA!

[LAUGHTER] NOW THAT YOU OWN THE "WASHINGTON POST," SOMETIMES THERE ARE SOME PEOPLE WHO CRITICIZE SOME THINGS THAT THE "WASHINGTON POST" SAYS, AND YOU'VE BEEN REMARKABLY QUIET.

BEZOS: I HAVE NO IDEA WHAT YOU'RE TALKING ABOUT.

[LAUGHTER] RUBENSTEIN: WELL, YOU'VE BEEN REMARKABLY QUIET IN NOT DEFENDING YOURSELF.

BEZOS: WELL, I DO DEFEND THE "POST."

IT IS A MISTAKE FOR ANY ELECTED OFFICIAL, IN MY OPINION-- I DON'T THINK THIS IS A VERY OUT-THERE OPINION--TO ATTACK MEDIA AND JOURNALISTS.

[APPLAUSE] I BELIEVE THAT IT IS AN ESSENTIAL COMPONENT OF OUR DEMOCRACY.

THERE HAS NEVER BEEN--I WAS GOING TO SAY NEVER BEEN ELECTED OFFICIAL WHO LIKED THEIR HEADLINES.

I THINK THERE'S PROBABLY NO PUBLIC FIGURE WHO HAS EVER LIKED THEIR HEADLINES.

IT'S OK.

IT'S PART OF THE PROCESS.

YOU KNOW, IF YOU'RE THE PRESIDENT OF THE UNITED STATES OR GOVERNOR OF A STATE OR WHATEVER, YOU DON'T TAKE THAT JOB THINKING YOU'RE NOT GOING TO GET SCRUTINIZED.

YOU'RE GONNA GET SCRUTINIZED.

AND IT'S HEALTHY, AND SOMEBODY VERY--YOU KNOW, WHAT THE PRESIDENT SHOULD SAY IS, "THIS IS RIGHT.

THIS IS GOOD.

I'M GLAD I'M BEING SCRUTINIZED," AND THAT WOULD BE SO SECURE AND CONFIDENT.

BUT IT'S REALLY DANGEROUS TO DEMONIZE THE MEDIA.

IT'S DANGEROUS TO CALL THE MEDIA "LOWLIFES."

IT'S DANGEROUS TO SAY THAT THEY'RE "THE ENEMY OF THE PEOPLE."

WE LIVE IN A SOCIETY WHERE IT'S NOT JUST THE LAWS OF THE LAND THAT PROTECT US.

WE DO HAVE FREEDOM OF PRESS.

IT'S IN THE CONSTITUTION, BUT IT'S ALSO THE SOCIAL NORMS THAT PROTECT US.

IT WORKS BECAUSE WE BELIEVE THOSE WORDS ON THAT PIECE OF PAPER.

AND EVERY TIME YOU ATTACK THAT, YOU'RE ERODING IT A LITTLE BIT AROUND THE EDGES.

NOW, LOOK, I DON'T WANT TO BE DRAMATIC HERE.

WE ARE SO ROBUST IN THIS COUNTRY, THE MEDIA IS GOING TO BE FINE.

YOU GREW UP IN TEXAS, INITIALLY.

BEZOS: YES.

RUBENSTEIN: AND FROM EARLY AGE, WERE YOU A PRETTY SMART STUDENT?

DID YOUR TEACHERS TELL YOU, YOU KNOW, YOU WERE GOOD OR-- I HAVE ALWAYS BEEN ACADEMICALLY SMART, AND THAT, YOU KNOW--BY THE WAY, THE OLDER I GET, I REALIZE HOW MANY KINDS OF SMART THERE ARE.

THERE ARE A LOT OF KINDS OF SMART.

THERE A LOT OF KINDS OF STUPID, TOO.

[LAUGHTER] BUT THERE ARE--YOU KNOW, I SEE PEOPLE ALL THE TIME WHO I KNOW THEY WOULDN'T HAVE GOTTEN A-PLUSES ON, YOU KNOW, THEIR CALCULUS EXAMS, BUT THEY'RE INCREDIBLY SMART.

BUT YES, I WAS A VERY GOOD STUDENT.

RUBENSTEIN: SO YOU ULTIMATELY MOVED TO HIGH SCHOOL IN MIAMI, AND THEN YOU WERE VALEDICTORIAN OF YOUR CLASS.

AND THEN YOU GAVE A SPEECH AS THE VALEDICTORIAN SAYING YOU THOUGHT WE SHOULD COLONIZE SPACE OR SOMETHING LIKE THAT?

BEZOS: I DID.

IT WAS 1982.

I GRADUATED FROM HIGH SCHOOL IN 1982.

BIG PUBLIC HIGH SCHOOL.

MIAMI PALMETTO SENIOR HIGH.

GO PANTHERS!

[LAUGHTER] AND THERE WERE 750 KIDS IN MY GRADUATING CLASS.

AND I LOVED HIGH SCHOOL.

I HAD SO MUCH FUN.

WE HAD--I LOST MY LIBRARY PRIVILEGES BECAUSE I LAUGHED TOO LOUDLY IN THE LIBRARY.

RUBENSTEIN: WHAT ABOUT THAT LAUGH?

WHERE DID YOU GET THAT LAUGH FROM?

YOU KNOW, IT IS DISTINCTIVE.

I'VE HAD THAT LAUGH ALL MY LIFE.

THERE WAS A SHORT--NOT THAT SHORT-- THERE WAS A MULTI-YEAR PERIOD WHERE MY BROTHER AND SISTER WOULD NOT SEE A MOVIE WITH ME BECAUSE THEY THOUGHT IT WAS TOO EMBARRASSING.

BUT I DON'T KNOW WHY I HAVE THIS LAUGH.

IT'S JUST--AND I LAUGH EASILY AND OFTEN.

THE PEOPLE WHO KNOW ME--ASK MY MOM OR ANYBODY WHO KNOWS ME WELL, AND THEY'LL SAY, "IF JEFF'S UNHAPPY, WAIT 5 MINUTES."

YOU GRADUATED AS VALEDICTORIAN.

YOU DECIDE TO GO TO PRINCETON.

HOW COME YOU DECIDED TO GO TO PRINCETON?

BEZOS: BECAUSE I WANTED TO BE A THEORETICAL PHYSICIST.

I CHANGED MY MAJOR VERY QUICKLY TO ELECTRICAL ENGINEERING AND COMPUTER SCIENCE.

BUT YOU GRADUATED SUMMA CUM LAUDE.

BEZOS: I GRADUATED SUMMA CUM LAUDE.

- PHI BETA KAPPA.

- PHI BETA KAPPA.

RUBENSTEIN: AND THEN YOU WENT INTO THE HIGHEST CALLING OF MANKIND FINANCE.

BEZOS: YES.

[LAUGHTER] I WENT TO NEW YORK CITY, AND I END UP WORKING AT A QUANTITATIVE HEDGE FUND RUN BY A BRILLIANT MAN NAMED DAVID SHAW, D.E.

SHAW & CO.

I LEARNED SO MUCH FROM HIM.

I USED A LOT OF HIS IDEAS AND PRINCIPLES ON THINGS LIKE HR AND RECRUITING AND WHAT KIND OF PEOPLE TO HIRE WHEN I STARTED.

RUBENSTEIN: THAT'S A VERY, VERY GOOD, WELL-KNOWN HEDGE FUND, AND YOU WERE A STAR THERE AS I UNDERSTAND.

WHAT PROPELLED YOU TO SAY, "I'M QUITTING THIS.

"I'M GOING TO START A COMPANY SELLING BOOKS OVER THE INTERNET, AND I'M GOING TO DO IT FROM SEATTLE"?

WHERE DID THAT IDEA COME FROM?

BEZOS: I CAME ACROSS THE FACT-- SO THIS IS 1994.

NOBODY HAS HEARD OF THE INTERNET, VERY, VERY FEW PEOPLE.

AND I CAME ACROSS THE FACT THAT THE WEB, WORLD WIDE WEB, WAS GROWING AT SOMETHING LIKE 2,300% A YEAR.

THIS IS IN 1994.

AND ANYTHING GROWING THAT FAST, EVEN IF IT'S BASELINE USAGE TODAY, IS TINY.

IT'S GROWING SO FAST, IT'S GONNA BE BIG.

AND SO I LOOKED AT THAT AND I WAS LIKE, "THERE'S GOT TO BE-- "I SHOULD COME UP WITH A BUSINESS IDEA, GET, YOU KNOW, "ON THE INTERNET AND THEN LET THE INTERNET GROW AROUND THIS AND WE CAN KEEP WORKING ON IT."

AND SO I MADE A LIST OF PRODUCTS THAT I MIGHT SELL ONLINE.

I STARTED FORCE-RANKING THEM, AND I PICKED BOOKS BECAUSE BOOKS IS SUPER UNUSUAL IN ONE RESPECT, WHICH IS THAT THERE ARE MORE BOOK ITEMS IN THE BOOK CATEGORY THAN THERE ARE ITEMS IN ANY OTHER CATEGORY.

THERE ARE 3 MILLION DIFFERENT BOOKS ACTIVE AND IN PRINT AROUND THE WORLD IN ANY GIVEN TIME.

SO MY--THE FOUNDING IDEA OF AMAZON WAS TO BUILD UNIVERSAL SELECTION OF BOOKS.

THE BIGGEST BOOKSTORES ONLY HAD 150,000 TITLES.

AND YOU WERE TELLING ME THAT YOU HAD TO GO DELIVER THE BOOKS TO THE POST OFFICE YOURSELF.

BEZOS: YEAH.

I DON'T STILL DELIVER, BUT I WAS DOING THAT FOR YEARS, AND I WAS PACKING BOXES ON MY HANDS AND KNEES.

IN THE FIRST MONTH, I WAS PACKING BOXES ON MY HANDS AND KNEES ON THE HARD CEMENT FLOORS AND WITH SOMEBODY ELSE STANDING NEXT TO ME, KNEELING NEXT TO ME.

WE WERE PACKING, AND I SAID, "YOU KNOW WHAT WE NEED.

KNEE PADS.

THIS IS KILLING MY KNEES."

AND THIS GUY PACKING ALONGSIDE ME SAID, "WE NEED PACKING TABLES."

[LAUGHTER] AND I WAS LIKE, "THAT'S THE MOST BRILLIANT IDEA I'VE EVER HEARD!"

AND THE NEXT DAY, I WENT AND BOUGHT PACKING TABLES, AND IT LIKE DOUBLED OUR PRODUCTIVITY.

WHAT PROPELLED YOU TO SELL THINGS MORE THAN BOOKS?

AFTER BOOKS, WE STARTED SELLING MUSIC, AND THEN WE STARTED SELLING VIDEOS.

AND THEN I GOT SMART, AND I E-MAILED 1,000 RANDOMLY SELECTED CUSTOMERS AND ASKED THEM, "BESIDES THE THINGS WE SELL TODAY, WHAT WOULD YOU LIKE TO SEE US SELL?"

AND THAT ANSWER CAME BACK INCREDIBLY LONG-TAILED.

THE WAY THEY ANSWERED THE QUESTION WAS WITH WHATEVER THEY WERE LOOKING FOR AT THAT MOMENT.

SO LIKE I REMEMBER ONE OF THE ANSWERS WAS, "I WISH YOU SOLD "WINDSHIELD WIPER BLADES BECAUSE I REALLY NEED WINDSHIELD WIPER BLADES."

AND I THOUGHT TO MYSELF, "WE CAN SELL ANYTHING THIS WAY."

AND SO THEN WE LAUNCHED ELECTRONICS AND TOYS AND MANY OTHER CATEGORIES OVER TIME.

AND THE VISION BECAME--BECAUSE YOU READ THE ORIGINAL BUSINESS PLAN, IT'S JUST BOOKS.

SO WHO CAME UP WITH THE IDEA OF PRIME?

PRIME SEEMS TO BE A GREAT WAY TO GET MONEY IN ADVANCE OF PEOPLE ACTUALLY GETTING THE SERVICES.

- YEAH.

- WHO'S IDEA WAS THAT?

BEZOS: ACTUALLY, IT'S VERY INTERESTING.

SO LIKE MANY INVENTIONS INSIDE OF A TEAM AND I LOVE-- TEAM INVENTING IS MY FAVORITE THING.

SO I TAP DANCE INTO THE OFFICE.

I LOVE AMAZON.

I HAVE SO MUCH FUN THERE.

I LOVE BLUE ORIGIN, I LOVE THE "WASHINGTON POST," BUT AMAZON IS MY FULL-TIME JOB.

AND I GET TO INVENT, I GET TO LIVE 2 TO 3 YEARS IN THE FUTURE.

AND MOST OF THE INVENTION WE DO THERE IS, YOU KNOW, SOMEBODY HAS AN IDEA AND THEN OTHER PEOPLE IMPROVE THE IDEA AND OTHER PEOPLE COME UP WITH OBJECTIONS WHY IT CAN NEVER WORK, AND THEN WE SOLVE THOSE OBJECTIONS.

AND IT'S A VERY FUN PROCESS, BUT WE'RE ALWAYS WONDERING WHAT COULD A LOYALTY PROGRAM BE.

AND THEN ACTUALLY A KIND OF A JUNIOR SOFTWARE ENGINEER CAME UP WITH THIS IDEA, NOT AS A LOYALTY PROGRAM, BUT THIS IDEA THAT WE COULD OFFER PEOPLE KIND OF AN ALL-YOU-CAN-EAT BUFFET OF FAST, FREE SHIPPING.

AND WHEN WE MODELED THAT--SO THEN, YOU KNOW, THE FINANCE TEAM WENT AND MODELED THAT IDEA, AND THE RESULTS WERE HORRIFYING THAT WE WOULD OFFER UNLIMITED SHIPPING.

SHIPPING IS EXPENSIVE AND THAT WE WOULD--AND CUSTOMERS LOVE FREE SHIPPING, BUT WE COULD SEE--I MEAN, AGAIN, BACK TO THAT YOU HAVE TO USE HEART AND INTUITION.

THERE HAS TO BE RISK-TAKING, YOU HAVE TO HAVE INSTINCT.

ALL THE GOOD DECISIONS HAVE TO BE MADE THAT WAY.

YOU DO IT WITH A GROUP, YOU DO IT WITH GREAT HUMILITY, BECAUSE BY THE WAY, GETTING IT WRONG ISN'T THAT BAD.

THAT'S THE OTHER THING.

WHEN WE MAKE MISTAKES, AND WE'VE MADE DOOZIES LIKE THE FIRE PHONE AND MANY OTHER THINGS THAT JUST DIDN'T WORK OUT, WE DON'T HAVE ENOUGH TIME FOR ME TO LIST ALL OF OUR FAILED EXPERIMENTS, BUT THE BIG WINNERS PAY FOR THOUSANDS OF FAILED EXPERIMENTS.

SO YOU TRY SOMETHING LIKE PRIME, AND IT WAS VERY EXPENSIVE AT THE BEGINNING.

IT COST US A LOT OF MONEY.

BECAUSE WHAT HAPPENS WHEN YOU OFFER A FREE ALL-YOU-CAN-EAT BUFFET?

WHO SHOWS UP TO THE BUFFET FIRST?

THE HEAVY EATERS.

[LAUGHTER] IT'S SCARY.

IT'S LIKE, "OH, MY GOD, DID I REALLY SAY 'AS MANY PRAWNS AS YOU CAN EAT'"?

AND SO THAT IS WHAT HAPPENED, BUT SURELY WE COULD SEE THE TREND LINES.

WE COULD SEE THAT ALL KINDS OF CUSTOMERS WERE COMING AND THEY APPRECIATED THAT SERVICE.

YOU SIT AROUND WITH YOUR TEAM AND SO FORTH, BUT YOU DON'T LIKE MEETINGS BEFORE 10 A.M. BEZOS: NO.

YOU LIKE TO GET 8 HOURS OF SLEEP.

BEZOS: YES.

AND YOU DON'T LIKE POWERPOINTS.

EXPLAIN ALL THAT.

WHY IS THAT?

OK, MANY--SO I LIKE TO PUTTER IN THE MORNING.

I GET UP EARLY.

I GO TO BED EARLY.

I GET UP EARLY.

I LIKE TO PUTTER IN THE MORNINGS.

I LIKE TO READ THE NEWSPAPER.

I LIKE TO HAVE COFFEE.

I LIKE TO HAVE BREAKFAST WITH MY KIDS BEFORE THEY GO TO SCHOOL.

SO I HAVE--MY KIND OF PUTTERING TIME IS VERY IMPORTANT TO ME.

AND SO THAT'S WHY I SET MY FIRST MEETING FOR 10:00.

I LIKE TO DO MY HIGH IQ MEETINGS BEFORE LUNCH.

LIKE, ANYTHING THAT'S GOING TO BE REALLY MENTALLY CHALLENGING, THAT'S A 10:00 MEETING, BECAUSE BY 5 P.M., I'M LIKE, "I CAN'T THINK ABOUT THAT TODAY.

LET'S TRY THIS AGAIN TOMORROW AT 10 A.M." AND SO THEN ON SLEEP, I GET 8 HOURS OF SLEEP.

I PRIORITIZE IT, UNLESS I'M TRAVELING IN DIFFERENT TIME ZONES.

SOMETIMES IT'S IMPOSSIBLE, BUT I AM VERY FOCUSED ON IT.

AND FOR ME, I NEED 8 HOURS OF SLEEP.

I THINK BETTER.

I HAVE MORE ENERGY.

MY MOOD IS BETTER--ALL THESE THINGS.

AND THINK ABOUT IT, AS A SENIOR EXECUTIVE, WHAT DO YOU REALLY GET PAID TO DO?

AS A SENIOR EXECUTIVE, YOU GET PAID TO MAKE A SMALL NUMBER OF HIGH-QUALITY DECISIONS.

YOUR JOB IS NOT TO MAKE THOUSANDS OF DECISIONS EVERY DAY.

IS THAT REALLY WORTH IT IF THE QUALITY OF THOSE DECISIONS MIGHT BE LOWER BECAUSE YOU'RE TIRED OR GROUCHY OR ANY NUMBER OF THINGS?

NOW, IT'S DIFFERENT IF IT'S A START-UP COMPANY.

I MEAN, YOU KNOW, YOU'RE REALLY, YOU KNOW, WHEN AMAZON WAS 100 PEOPLE, IT WAS A DIFFERENT STORY, BUT AMAZON'S NOT A START-UP COMPANY.

AND ALL OF OUR SENIOR EXECUTIVES OPERATE THE SAME WAY I DO.

THEY WORK IN THE FUTURE.

THEY LIVE IN THE FUTURE.

NONE OF THE PEOPLE WHO REPORT TO ME SHOULD REALLY BE FOCUSED ON THE CURRENT QUARTER.

WHEN YOU BUY OVER THE INTERNET, AMAZON, DO YOU EVER GET THE WRONG ORDERS?

ANYTHING EVER WRONG?

WHAT DO YOU DO?

DO YOU CALL UP AND COMPLAIN OR YOU DON'T HAVE ANY PROBLEMS?

BEZOS: NO, I AM A CUSTOMER OF AMAZON.

HOPEFULLY, LIKE ALL OF YOU IN THIS ROOM-- RUBENSTEIN: IS THERE ONE PERSON FULL-TIME WHO SERVICES YOUR ACCOUNT?

BEZOS: IF THERE'S ANYONE IN THIS ROOM WHO'S NOT AN AMAZON CUSTOMER, SEE ME RIGHT AFTERWARDS, AND I'LL WALK YOU THROUGH IT.

IT'S--YEAH, I HAVE PROBLEMS SOMETIMES, AND I TREAT THEM LIKE THE SAME WAY I TREAT A PROBLEM THAT I WOULD GET FROM A CUSTOMER.

MY E-MAIL ADDRESS IS FAMOUS, AND I KEEP IT AND I READ IT.

IT'S JEFF@AMAZON.COM.

I DON'T SEE EVERY E-MAIL THAT I GET ANYMORE, BECAUSE I GET TOO MANY, BUT I SEE A LOT OF THEM, AND I USE MY CURIOSITY TO PICK OUT CERTAIN E-MAILS.

I'LL GET ONE FROM A CUSTOMER AND THERE'S A DEFECT.

YOU KNOW, WE'VE DONE SOMETHING WRONG.

USUALLY PEOPLE ARE WRITING US, NOT ALWAYS, BUT USUALLY THEY'RE WRITING US BECAUSE WE'VE SCREWED UP THEIR ORDER SOMEHOW.

AND I AM--SO I'M LOOKING AT THIS, AND FOR SOME REASON SOMETHING SEEMS A LITTLE ODD ABOUT THAT ONE.

AND SO I'LL ASK THE TEAM TO DO A CASE STUDY AND FIND REAL ROOT CAUSE OR CAUSES--IT'S USUALLY CAUSES--REAL ROOT CAUSES AND THEN REAL ROOT FIXES, SO THAT WHEN YOU FIX IT, YOU'RE NOT FIXING IT FOR THAT ONE CUSTOMER, YOU'RE FIXING IT FOR EVERY CUSTOMER.

AND THAT PROCESS IS A GIGANTIC PART OF WHAT WE DO.

SO I WOULD TREAT MY--IF I HAVE A FAILED ORDER OR SOME BAD CUSTOMER EXPERIENCE, I WOULD TREAT IT JUST LIKE THAT.

RUBENSTEIN: WHAT WOULD YOU LIKE TO BE-- HAVE AS YOUR LEGACY?

BEZOS: WORLD'S OLDEST MAN.

[LAUGHTER] THAT'S A FAMOUS LINE I LIKE.

BUT THE REAL THING IS, YOU KNOW, IT'LL BE WHATEVER IT'S GOING TO BE.

I'M GOING TO BE PROUD OF THE THINGS-- I LIVE MY LIFE IN SUCH A WAY THAT WHEN I IN A QUIET MOMENT OF REFLECTION AND I'M THINKING BACK ON MY LIFE THAT I HAVE AS FEW REGRETS AS POSSIBLE.

AND I DON'T--WHAT WILL MY LEGACY BE?

I HAVE NO IDEA.

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