 Good day, fellow investors. The average investor over the past 20 years achieved average returns of around 2%, 2.5%, 2.5%. The market, the SAP 500, reached returns of above 7% per year. And that's a staggering difference. Where does the difference come from? It's a mindset. Just to see how important this is, so 1,002.6% per year over 20 years is 1,680. 1,007.2% per year over 20 years is 4,016. Where did the difference go? It's all about the mindset. The average investor usually does the wrong thing at the wrong moment in time. It doesn't even take advantage of the tailwinds of the positive sum game that investing really is. And therefore, we should always work to develop the mindset. How to develop the investing mindset? Simply read Warren Buffett's letter to shareholders and we are continuing with our summary on those letters and we are at year 1985. So let's start our learning process from Warren Buffett himself. Thank you, Warren. Buffett is clear about two things. The big opportunities come here and there and you have to be ready for them. Thus, the 100 billion in cash he has on his bank account today ready to deploy them. So he says that our gain in network during the year was 614 million, 1985 I'm talking here, or 48.2%. And he says that compounded annually at 23.2% over the last 21 years, something that will not be repeated because today we cannot find significantly undervalued equities to purchase for our insurance company portfolio. So this is 1985-1984, but he waited 1987. There was the stock market crash. He was ready to buy Coca-Cola and make huge returns. So very, very interesting how he doesn't invest in if he doesn't find good opportunities. Fortunately for him, prior to those years, he found great opportunities and reached those great gains. Their investing focus is explained here very, very simply. Their goal is to reach superior returns than those earned by corporate America generally. And they do that because they don't have to worry about quarterly or annual figures, but instead can focus on whatever actions will maximize long-term value. Hedge fund managers, investment managers, pension fund managers, Wall Street is so focused on the quarterly two quarters that it's crazy. And you have a great advantage if you don't have to worry about quarterly or annual figures. We can expand the business into any areas that make sense. Our scope is not circumscribed by history, structure or concept. So by having an open mind, you can invest wherever you want and take advantage of what's going on. Even if Wall Street doesn't want to get into those areas. And then they love their work. I love my work. And if you love investing, it's simply a passion that you love. And it leads to great returns. And he says here that he would be happy with 15% over the long term with some fortune that depends on the market, but the market has rewarded him well. And he continues, why not to listen on analysts and institutions because they have short-term orientation. You might think that institutions with their large staffs or highly paid and experienced investment professionals would be forced for stability and reason in financial markets. They are not. Stocks heavily owned and constantly monitored by institutions have often been among the most inappropriately valued. So then there is a great story by Ben Graham from 40 years ago that illustrates why investment professionals behave as they do. An oil prospector moving to his heavenly reward was met by St. Peter with bad news. You're qualified for residence, said St. Peter. But as you can see, the compound reserved for oilman is packed. There's no way to squeeze you in. After thinking a moment, the prospector asked if he might say just four words to the present occupants. That seemed harmless to St. Peter, so the prospector cupped his hands and yelled, oil discovered in hell. Immediately the gate to the compound opened and all of the oil man marched out to head for the nether regions. Impressed, St. Peter invited the prospector to move in and make himself comfortable. The prospector paused. No, he said, I think I'll go along with the rest of the boys. There might be some truth to that rumor after all. So really, the market is crazy like this. If you have a long-term orientation, then you'll do very, very well. And the best way is to follow Buffett with him, his mindset. In 1984, 1985, he realized great gains on general foods. And he says how in 1980 it was cheap business, so they bought it. They didn't know about when they will realize the sale. They don't focus on that. They really focus on just buying great value when they see it, and that's it. And then the returns will come. And the key is, again, don't lose money, don't lose money, focus on the risk. And when you buy something cheap, priced fairly below its intrinsic value, then you run no risk of losing money. And that's what has led Buffett to his great returns. He also discusses his big failure in 1985, textiles, how he kept it alive to keep the jobs, but it had to be closed. So even with mistakes, you can get to great returns. He reinvested the equity into other businesses that he found when he bought the textile business. And the rest is history. However, there will always be mistakes, so you have to take them into account. If we look at the portfolio, it has a really low number of stocks inside it. Beatrice is just a short-term arbitrage play two, Park Cash, and he made 2% return on that since both. But if you look at the portfolio, it has just one, two, three, four, five, six stocks. Great returns quadruple the portfolio on just these stocks, not counting the things that he sold, but really focused on limited investments, margin of safety, limiting risk, and then letting the reward come from the great investments. If we compare it to 1981, there were more opportunities. Some got acquired, some got sold, but he made a lot of money on these guys. Further, we'll see how that develops over the next years, 1987, 1988 opportunities, and whether this portfolio will change. So, thank you for watching. I hope you enjoyed this series on Warren Buffett letter to shareholders. It's all about the mindset. And in this letter, we have seen how the focus should be really on the long term. Forget about the noise, forget about the news, and you'll do extremely well. Just focus on business returns, business opportunities, and buy when something is cheap and below intrinsic value. Thank you for watching. Looking forward to your comments, and I'll see you in the next video.