Jeff Bezos: biography, personal life, fortune

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

What do the largest online retailer Amazon.com, The Washington Post publishing house and an aerospace company have in common? They are united by the owner, ideological inspirer, developer, billionaire Jeff Bezos.

Childhood

Native American Jeffrey Preston Bezos was born on January 12, 1964 in Albuquerque, New Mexico, USA. His parents, Jacqueline Guise and Tad Jorgensen, met at school. When Jacqueline became pregnant, she was 17 years old, and Ted was 18. With their parents' money, they went to Mexico to get married. The marriage did not last long: a year after the birth of their son, the couple filed for divorce. Jeff Bezos never met his biological father, believing that this role rightfully belongs to the Cuban Mike Bezos, his mother's second husband. A man adopted his wife's child, raised him as his own.

An inquisitive mind manifested itself from early childhood - his favorite pastime was to take apart everything that was bad in his father's garage. At the age of 6, he independently developed an alarm that went off when someone tried to violate the privacy of his room. Another original creation is the “solar microwave”, consisting of foil and an umbrella. With her help in bright raysthe sun could make a couple of hot sandwiches.

A big role in the upbringing of Jeff Bezos, whose biography has become the subject of our review, belongs to his grandfather, Lawrence Preston, who served as Regional Director of the US Atomic Energy Commission until his retirement. Summer holidays at his ranch gave the boy the full opportunity to show his talents. Together they repaired water pumps, harvesters, mills, while Jeff was in high school, they organized an educational-type children's camp. Grandpa and Grandma were members of the America and Canada Travel Club with their trailer homes, and their grandson enthusiastically took part in these trips.

Education

School Jeff Bezos (nationality - American) graduated with honors, was honored to deliver a farewell speech to graduates. School years were spent under the auspices of passion for physics, he planned to continue to develop his knowledge at Princeton University, to become an engineer.

But fate decreed otherwise: the faculty was overcrowded, there were no places left, the decision had to be urgently changed. The choice fell on the department of computer software. His desire to be the best in every area of his life worked here too: in 1986 he graduated from the university with honors, after which he immediately received many job offers.

Career

Jeff Bezos (you already know the nationality) decided to start his career at Fitel, which developed software for stock trading. Changed after two yearsworkplace by entering into an employment contract with Bankers Trust. But this work did not bring satisfaction, he felt that he could do much more.

New searches bring him into contact with investment management company D. E. Shaw. Its founder, David Shaw, later, in an interview, will say that he was amazed at the combination of the qualities of a technical specialist with the inexhaustible creativity of Jeff Bezos. The biography contains information that for 4 years of work, Jeff rose to the rank of senior vice president. On the instructions of the management, he devoted a lot of time to the then little-known Internet, new areas of business, and software.

Jeff Bezos: family, personal life

When Jeff realized that he was ready for a serious relationship, he approached this issue thoroughly. Danced, went on blind dates. But it didn't take long to find the other half. Jeff Bezos' future wife, Mackenzie Tuttle, was an analyst at D. E. Shaw. More precisely, the acquaintance took place in 1993, when she appeared on the threshold of his office for an interview.

Jeff Bezos, talking with reporters, always notes not only the beauty, sexuality of his wife, but also resourcefulness, a sharp mind, because he needed such a companion who could even pull out of the prison of third world countries.

Their offices were next door. Mackenzie took the first step by inviting him to dinner one day. Subsequently, she noted that she was captivated by the famous rolling laughter and immediately fell in love. Three months later, the personal life of Jeff Bezos moved to a newlevel. They got engaged, and six months later they officially registered the marriage.

Does Jeff Bezos have children? Yes, the couple has four children. Three of them are the couple's natural sons, the daughter from China is adopted. The Jeff Bezos family is large and friendly. Their happiness can only be envied.

Change

According to the biography, Jeff Bezos once read that the number of users of the World Wide Web increased by 2300% in just a year. He tried to find a niche of goods for trade via the Internet, which would be in demand, but in vain - the reasoning led to a dead end. The idea came from his wife, who dreamed of becoming a writer. By the way, she will still write two books in the future - "The Trial of Luther Albright" and "Traps", for one of which she will be awarded the American Literary Prize.

Then Bezos came up with the idea to sell books online, because to buy them, you do not need to preview or try them on. In addition, he knew that mail-order companies would not be able to compete with him. Such firms do not even have the opportunity to create a voluminous advertising catalog for distribution, because in printed form it will be like a large encyclopedia. But the Internet can be filled with an unlimited amount of information.

The next day, Jeff Bezos, whose biography is of great interest today, was already among the participants of the conference of the largest publishers, convincing them of the huge prospects for sales through the online store.

Resignation letter from D. E. Shaw got ondesk management by next Monday morning. His boss, David, did his best to plant a seed of doubt in the mind of the young entrepreneur, urging him to spend more time developing a step-by-step plan. Jeff had the courage not to listen to reason. So in the spring of 1994, he devoted himself entirely to his work.

How history was made

To start the implementation of the plan, considerable financial resources were required. The first investor was his father, Mike Bezos, who wrote him a check for $300,000. Jeff honestly informed all his shareholders that the probability of success is 30%. In the meantime, to start work, it was required to go through the procedure for registering a company. The first step was to assign a legal address. It was decided to choose from the list of cities on the US west coast, because it was here that IT companies were actively developing.

Under US law, buyers will be required to pay tax if registered in the same state as the seller. Since the goal was to establish sales throughout the country, it was necessary to choose the state with the smallest population, so that only a small part of buyers would pay the increased tax. The choice fell on Seattle, Washington, where one of Jeff Bezos' friends lived, who promised to invest a large amount in his business and introduce him to the right people.

When the Bezos couple arrived with documents to see a lawyer, it turned out that no one had thought of the name in the confusion. Jeff announced that he would name the company "Kadabra", from the magician's magic phrase "Abracadabra". The lawyer turned out to be more down to earth and gavetime to think. Amazon arrived two weeks later.

The first steps of the Internet giant

The first office of the future titan of online trading was located in the couple's rented house. Jeff and his staff had three computers at their disposal to develop the store's technical platform. Immediately after its completion and testing of the system, the first orders began to arrive, the office moved to the basement, where the recording studio had previously been located. His team has also developed a special discount system so that customers can see the benefits of purchasing goods through their website.

The scheme of work was simple: receiving an application, Amazon employees ordered books from Ingram, one of the largest wholesale suppliers of printed materials in the United States with a minimum order of 10 items. To get around this condition, Jeff used a trick: he included in the list 9 items that were not in stock. The result was a parcel with the necessary book and a letter with sincere apologies for the absence of the others.

Bezos personally delivered orders to the post office. It is his team that launched the concepts of 1-click purchase, customer reviews section, as well as the function of purchase confirmation by e-mail. The founder did not have a personal car, he drove the parent 1987 Chevrolet Blazer, because the company was forced to save money.

The team consisted of people who would never prefer money to the opportunity to realize their ideas. The main task was to improve the quality and uniqueness of the project, they sought to turn Amazon.com into something like a social network,where everyone could share their opinion about the book.

Over time, the concept of the store has been finalized. Among randomly selected users, a survey was conducted (about 1000 people participated) about what they would like to buy on the site. The list was filled with many items, ranging from household appliances to a rag for a car. This moment turned the course of Bezos' thinking. Now on the store's website you can buy furniture, films, building materials, children's products, toys, medical devices and much more.

Development and competitors

According to the original business plan, a profit was planned in 4-5 years, but in fact this happened only by 2001. After 7 years, Amazon Jeff Bezos earned $5 million in net profit with an annual turnover of over $1 billion. However, it is worth noting that by 1999, the price of the company's shares soared 5 times.

After 2005, the company actively sought to reduce shipping costs and delivery times. An offer was developed for buyers: for a subscription fee of $ 79 per year, you can get the goods in two days. Producers were offered the services of sorting centers for storing products, which would also reduce delivery times. The realization that his competitors were not book-selling Barnes & Noble or big retailers like Walmart but Google and Apple came quickly. For example, the release of the iPod and Apple's own music store significantly reduced Amazon's revenue.

Jeff Bezos decides to hit him himself, for fear that someonemay also come crashing down on the book side of the business. The company introduces the Kindle to the public - an electronic device for buying and reading books. At the same time, in an interview, Jeff notes that he does not wake up in the morning with thoughts about competitors, developing plans for how to eliminate a couple of such companies, moreover, this is the last thing he thinks about. Its goal is to create conditions for buyers better than others.

Company ideology

Amazon is austere, and the 2008 crisis partly confirmed the correctness of this thinking. So, employees do not use color printers, and parking in the corporate parking lot is still paid. Jeff made his first desktop from a wooden door he bought from a cheap shop around the corner. The office style of the company still does not accept the use of expensive furniture, and decorating the office with luxurious items is prohibited.

Bezos, an ardent supporter of the "customer is always right" rule, tasks his employees with studying the specific needs of his customers, forgetting to prioritize the bottom line result of the quarter. So, it took a couple of months to agree with the designers of the branded box for sending books, since Jeff wanted it to be used in everyday life, and not get rid of it by tearing it apart.

The requirements for employees are also high. They require maximum involvement in the process, full return and high efficiency. The corporate rule is to work to the limit. Inefficient team members are fired annually. Anyan employee, even holding a small position, is required to sign a non-disclosure agreement. Each new worker increases the requirements for subsequent ones.

You have to go through a series of interviews to get a job. The interviewers include a person whose task, in slang, is to "raise the bar." His powers imply the ability to refuse an applicant without giving reasons, even if other members of the commission approved his candidacy. This role usually goes to employees who have made more successful hiring decisions.

Other activities

The entrepreneur did not stop there. Since childhood, like many boys, Jeff in 2000, who dreamed of conquering space, created a company that organizes space tourism - Blue Origin. It was headed by ex-NASA engineer Rob Meyerson.

2015-2016 were marked by tests of an unmanned spacecraft, which successfully climbed 100 km. over the Earth and safely returned to the starting position. In 2018, it is planned to carry out the first flights with the participation of people. The company employs over 600 people, but so far it exists only due to the investments of Jeff Bezos and is completely dependent on the success of Amazon.

The projects do not end there: in 2013, the entrepreneur acquired The Washington Post for $250 million, which, by the way, once had the imprudence to publish a note about the financial difficulties of the creator of Amazon. In addition, he played the role of an alien in one of the scenes of the film. Star Trek Infinity.

Billionaire fortune

Forbes first mentioned Jeff Bezos in 1997. His net worth was $1.6 billion. Jeff was on the list of the TOP-400 richest Americans. In 1999 he was awarded the title "Person of the Year" by Time magazine. By 2007, Jeff Bezos' net worth, $4.4 billion, was in the top ten. In 2017, he settled on the third line of the ranking of the richest people on the planet, earning $ 72.8 billion. According to Land Report, he is one of the largest landowners in the country, owns several mansions:

• Medina, Washington. There are two houses, the area of which is over 2 hectares. One of the estates stretches along the picturesque shore of the lake. The length of the coastline is almost 100 meters. This is where Jeff's family lives most of the time.
• Beverly Hills, California. Jeff Bezos' house is located on one of the streets popular among Hollywood stars, has many bedrooms, a swimming pool, fountains, a garage for several cars, a tennis court.
• Van Horn, Texas. Growing up on a farm in Texas inspired a desire to own a 30,000-acre ranch. Blue Origin is also located here.
• Manhattan. Owns three luxury apartments in West New York.
• Washington. The Kalorama area is popular as the residence of the most high-ranking officials. For example, the Obama family and Ivanka Trump and her husband own real estate on this street. The area of the house is 2500 square meters. Buildingformerly a textile museum.

Jeff Bezos: charity

In 2012, Bezos and his wife declared their citizenship by donating $2.5 million to support same-sex marriage. In addition, $42 million and part of the Texas lands were invested in the construction of The Long Now - an underground clock designed to work for 10 thousand years. Based on open data and media reports, The New York Times calculated that the entrepreneur spent 100 million on charity

The billionaire, famous for his tough personnel policy and fantastic ideas, excites minds around the world, because the inexhaustible energy of the Amazon founder constantly pushes him towards new projects. It is known that he even thinks about building a base on the Moon in order to create an electromagnetic gun there to launch cargo into orbit. One thing is clear: whatever he undertakes, it is doomed to success.