Amazon (NASDAQ: AMZN) just closed the books on one of its worst years. Its retail business struggled to deliver growth in a weakening macroeconomic environment. Most notably, Amazon took an impairment charge of $720 million relating to Amazon Fresh and Amazon Go locations, and also closed its 4-star bookstores. 

The investments in brick-and-mortar stores might seem like a waste of resources for the e-commerce leader, but it points to Amazon's greatest competitive advantage, which is growing cash flows from its non-retail businesses.

Amazon can afford to take chances on new opportunities and strengthen its brand with local stores to stay close to customers. This is why Amazon is my favorite stock to consider holding forever and why it might be undervalued after its tumble over the last year.

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Source Fool.com