 Good day, fellow investors. Today we're going to talk about conference calls, analysts, research and then Occam's razor applied on to that. Not about simplifying investment in index funds, that's clearly not that I'm going, not something I'm going to talk about using Occam's razors. But I'm going to talk about something very, very important. Recently, MIFIT2 has made changes to the research budgets over the last 12 months for investment firms, etc. I had to close down my small Dutch investment fund because of them, because of higher costs, because it simply didn't pay. But apart from that, the changes will have an impact on reporting of medium and small cap companies resulting in less and weaker coverage. This deficit will only increase over time. The lack of coverage can result in less investors and lower prices and proper research will allow a value investor to exploit this situation. So let me give you a story about this, how it works, etc. Now, I don't know, but whether you have ever attended a conference call or watched it or webcast or something, it is really a crazy environment. If you look at a recent Chinese IPO for the first 40-45 minutes, they just read the report they have published and they do it in Chinese and then they translate it into English, which is a waste of my time because I can read it myself in five minutes. And then you have analysts, analyst questions. Many of them have no analyst coverage, so there is one poor analyst that is probably dragged there to ask a question. So there is absolutely no coverage. Small European stocks, similarly. And then only as the focus is on the big companies, because there is where the money is, you can easily sell an Apple, a Facebook, an Amazon. If I would talk only about those stocks, my channel would be much, much bigger. But if you focus on the smaller ones, the undervalue, the uncovered, the unlike, you can find great opportunities if you're willing to do the research and dig into the boring. And now we have an advantage, a tailwind that comes to that, because of new regulation. Further on this conference calls the smaller the company, the younger the analyst, the less experience, the more sectors the analyst covers. So it's really not a lot of added value. For example, Alaser Gold, Goldminer that has been saying that they will increase production 100% in 2019, that they will make more money cash flows usually had one analyst that was following the conference call, just one. And then all these analysts, even if there is more, they just simply put the information in there already stamped out, already formatted reports, and they send them out. And I recently compared about nine investment reports on a Chinese toll road stock, they were all the same. Just what is different is their comparison that discount rates and things like that. So unfortunately, institutional investors really look at those reports because they are not doing their own research. As we have discussed in the Seth Klarman episode, that research is really low rated. So if you do your research, you can take advantage of what's going on. For example, just a funny note here, just in one of 500 conference calls that I listen, attend, only just rarely it is really fun like this. So, Compañía de Sanamento Básico de Estado de São Paulo, Sabezp, the next question comes from Senal Armin, with Windacre, who was an owner there. So not an analyst, he really had skin in the game. And he asks, I have two questions. One, the SSP tariff review, I think is essentially stealing over one billion Brazilian reels from shareholders and EBITDA every year. I think actually even more than one billion a year, which is a terrible result. I want to know in more detail, what are you guys going to do to protect the shareholders and get the situation corrected? And second, what can you do on both OPEX and CAPEX to preserve the company better? Because you're not getting credit, especially on the OPEX side, you're not getting credit for what you spent. So how are you going to spend less so that there isn't a huge difference between the regulatory model and what you're spending? So this was really fun, that I was reading it and I said, oh, okay, this is how our conference calls should look like. Most of the conference calls is just about boring coffees. It looks like more that somebody is going to be executed in a boring way. So it's really a terrible environment. And now with new regulations where investors have to pay for research separately with brokerages, it means that there will be even less researchers, less analysts that will increase the opportunities for us that are willing to dig into such an environment. The fact is that investment research has to be separated from the other brokers services. So they will now charge a subscription for written research plus additional fees for chats with analysts. So 60% of asset managers answering a survey from Trading Network LiquidNet stated that as a result, they had reduced the number of research providers they draw on. So Mithi2 will probably cut research spending and brokerage revenues. And this seems to be happening. For example, Economist Magazine recently quoted a McKinsey report stating it's now estimated that the sales side commissions from equity trading in Europe have already fallen 30% in the last 12 months. Others have predicted an acceleration of mergers and that's exactly what happened as Allianz Bernstein, a fund manager acquired autonomous research. So less researchers, less analysts, and the market is really high now. So in Europe, there will be less coverage on the small caps, more potential for us to take advantage of. I listened to this conference call about miners, for example, or some other smaller companies. There have one analyst and you can see, okay, mostly it's the cheapest analysts they have, the youngest that is sent there. Nobody really cares about those things. Everybody is focused on the big companies because they're where the money is. With even less coverage, with perhaps a decline in the market, budget cuts, there is even less coverage. So there will be more differentiation, there will be more irrationalities, less information and more advantage for those who are willing to do the work. So thank you Mithi2 for lowering the bar for us and increasing our potential returns. And here we come back to Occam's razor. In this case, less research, less coverage, less knowledge, more irrationalities. So the simple explanation of why something might be undervalued is simply there is nobody covering it. But you have to, okay, no, you have to do your research, you have to do the process of finding those small little gems. How to do that? Look, read Trade Magazine, listen to conference calls, listen to other conference calls in the sector, sector-related, to get the feeling, okay, what's going on, what will happen, etc. And it takes a lot of time, but I can guarantee you, as you see with some of my stocks, for example, Navson or something, okay, there can be an advantage there. So that's it. That's what I do. Thank you for watching. Hope I have just shown you a glimpse of how things work and how I work. Looking forward to your comments and I'll see you in the next video.