 Good day, fellow investors. Seth Klarman, a very low-key value investor, founder of the Baupost Group, has delivered returns of 17% per year over the past 40 years. And he says how the single greatest edge an investor can have is having a long-term orientation. So today we're going to discuss what a long-term orientation is, go through Seth's portfolio and find two examples that would clearly indicate what he means by a long-term orientation. Let's see his portfolio from his 14F, this is just the American portfolio. And two stock picks that are there are Chenier Energy, LNG and Nova Gold Resources. Let's first talk about Chenier Energy. This is an LNG producer building a lot of platforms to sell liquefied gas from the United States across the world. He is bullish on that and he sees that over the next 10 years the demand for liquefied gas will be big across the world, especially from emerging markets, and that Chenier will do good. Here is Chenier Energy. You can see how Klarman opened the position in 2014, bought more in 2014, then we had oil prices, gas prices drop. But what did he do when the stock price dropped below 30? He doubled his position. He doubled his portfolio position. Then later when the stock price again appreciated, he started selling what he bought at the low point, but it is still now his greatest portfolio position. So what was Seth Klarman doing? He has a line that he thinks, OK, this is the long-term return I want to get from Chenier. Probably I made a video in the card below on YouTube about 15%. So that is what he looks at. And then when the stock price is cheaper, giving a discount to that long-term 15% return he wants, he buys more. When it is above that discount, that long-term range he has, he sells a part of it. So he keeps his portfolio in balance and he adds to his investment returns by rebalancing the position. So long-term return, let's say 12% to 15%, if he adds a few percentages per year on those 12% to 15%, you are to his average long-term investment return of 17%, which is huge. And he has been doing that for 30 and more years. And he also keeps a lot of his portfolio in cash to take advantage of those opportunities. Seth Klarman, I must say, is the investor I admire the most. And in order to, let's say, promote him on this channel, I will go through his book, Margin of Safety, as soon as we finish with the intelligent investor, we'll do a recap summary of the margin of safety. I think the best books for investors. Let's look at another position, Nova Gold Resources. Now, if we look at the price of gold, most people are focused on short-term gold price movements. I've had a lot of comments about gold dropping from $1,350 to $1,250. But let me show you first the long-term gold chart. If we go back 15 years ago, gold prices were at below $400 per ounce. Then they went up to $1,800, and now they are at, what, $1,200. So if you look back at then, if you were concerned about gold going from $400 to $370, which is a 10% decline, you would have missed on the biggest run-up in gold that has happened from 2002 to 2012. And that's exactly what Claremont says. Is there a chance that gold will double in the next 10, 15 years? Yes. If that happens, what happens with my investments? And look at what Nova Gold offers. The Donlin project increases its net present value 20 times if gold prices increase two times. So if that happens over the next 15 years, let's say we have another recession, monetary easing, money printing, and then we see doubling gold price. Gold, I don't know, at $2,500, $3,000, this said Claremont investment goes up 20 times. And this is also why his exposure to Nova Gold, he has less than 1% in Nova Gold. And again, he carefully rebalances that. But if gold explodes, that will become 10%, 20% of the portfolio, and he will probably rebalance with other better investments in time. However, this is the exposure. Extreme positive, low negative. So Claremont's message is to keep our eyes open for the long term. Think, okay, how will the world look like in 10, 15 years? And then when you start putting those puzzle pieces into place, you start looking for investments, okay, where can I lose little or nothing? Or make huge, huge returns if the world changes as I see it. I'm now investigating Brazil. There is some turmoil, but my idea is that over 10, 15 years, Brazil will be a much better place than it is now. As it is now a much better place than it was 15 years ago. And similarly, other countries, electric vehicle trends, copper, metals, food, land. I don't know what we can find to find low risk, high returns investment, the way said Claremont has been teaching us. So this is part one of the what kind of advantage individual investors can have over the long term. Tomorrow we'll discuss what Peter Lynch has to say about investing and what kind of an advantage we can have. Thank you for watching, looking forward to comments and I'll see you in the next video.