 Good day, fellow investors. So the coronavirus is the topic of this week. And in this week's stock market news, I really want to discuss that, define the scenarios, give a report from Italy. Yes, I have been to Italy to see with my own eyes. Sorry, sorry, if I contagia you, please subscribe and click that notification bell so that we go through this new coronavirus investment journey together. So we'll discuss the situation, Europe now, new contagions, very interesting, from unfortunately health perspective and from an investing perspective. We'll then discuss the fundamentals of investing, which is the topic of this channel. As always, what would Buffett do? What are the risks and rewards? And of course, my strategy. Let's dig immediately into the content. If you look at the headlines, please subscribe to Will Wall Street Journal to Bloomberg to everything. And if I just summarize it, worst year since 2009, JPMorgan, cutting profit estimates for SAP 500 and globally, and then new cases all over the world. So it's really, really spreading fast. The fear and greedy index, I think a month, two months ago we used it and we showed how it was pretty positive, extreme greed levels. And usually when there is extreme greed, quite often is followed by extreme fear where we are now. And the result of extreme fear is this decline in the SAP 500 index of almost 12% in five days. And I don't know how it will be this Friday, but probably very bad because I'm filming this just before the market opens. The problem is in such a situation that the theater door, the exit door with the full theater is usually very, very small when things like this happen and therefore you see such declines. Now we are seeing new situations, new contagions all over the world, which increases the panic and has a big economic impact. I'll show you in a moment the situation in Italy where I have been yesterday and a little bit around the globe so that we put the perspective on what's going on and then we'll define scenarios and those scenarios will help us define how to behave. We recently have had two new situations, three new in the Netherlands. Italy is with a number of patients growing very, very fast and you'll see Italy is blocked. Now there are also good things. Housing is getting a jolt but that might be a very short-term situation because of low interest rates because of everybody rushing to safety, interest rates are falling, which allows you for cheaper and cheaper mortgages but then you have to know what you're buying and if people start losing their jobs, having less income, less stock market values, then also the market, the real estate market will be hurt. So I've been to the north of Italy, had the meeting, the borders were open so we went, we met two people and did some shopping but the key is that on the road, there were only trucks, no cars. We went to a shopping center to do some shopping. It was completely empty so you can't get coronavirus because it's really empty. No coronaviruses in the area we were but the highway, everything is totally empty. A friend went to Milan to the rail station today, 8.30 in the morning. It's usually packed like this that you don't see, you can barely move. As you can see, it's empty. The train to, the fast train to Rome, to Bologna that he took is also empty, which is really interesting how, okay, now there is the virus but people are really protecting, taking care of themselves and hopefully this contagion will ease out like we have been hearing from China where the situation is easing out thanks to the quarantine and everything. However, this will have an economic impact and we have seen Yao Kai's video reporting from Japan. Airports are really, really empty also in Japan and outbound flights from the United States are down 20%. That's inevitable, we'll have an impact on earnings, on the economy and on stock prices. So that's inevitable. We just have to see now how to behave and we'll behave in relation to the scenarios out there. This is the global situation, but as I said in my video from three weeks ago, discussing the coronavirus, any new outbreaks will have the similar, a similar impact as we have seen in China to other regions and now those regions are spreading all over the world. The virus is, let's say, a severe form of flu from the numbers there, so 80% mild, mild symptoms, unfortunately with the older, with those that have a precondition, it is unfortunately very, very deadly. And this is therefore logically, rationally, close the borders, quarantine, try to protect as much as we can, which will have repercussion and has already huge repercussions on the economy that we will see when the earnings come out in the next three, six, 12 months, depending on how long will this coronavirus peak because if it peaks now during the spring days and then it eases out in the summer, then it won't be such a big hit. Perhaps it will be a normal flu, but if it stays for a year, two years, we will learn how to live with that, but it will have big implications for the economy. However, in the very long term, the world will again be a better place that's given. The question now is how much will the impact be? How big will the impact be? Whether it's time to buy now or to wait, that's impossible to know and impossible to predict. So you have to do everything in stages, see who was going on, what's becoming cheap and what is the actual risk reward of investments. The key issue is something else when it comes to investing. The key issue is that there is a lot of debt in the system being pumped from money and even companies like 42% of the market in Europe that have negative interest rates will have a difficult time repaying, refinancing that debt if there is no business for them to do. Global US corporate debt has skyrocketed, so if there is a slowdown, there will have to be more debt or saving or intervention from the governments, from central banks, that's a given. And now when something like that happens, you see the wisdom of Warren Buffett. Only when the tide goes out do you discover who's been swimming naked. And now the tide is going out and you see who has the cash, 125 billion for Buffett and who hasn't and who has to sell whatever they have to sell. Stronger balance sheet stocks are doing better, respectively, than weaker balance sheet in stocks. And you can see when the periods are good, then the bad balance sheets do extremely better, outperform the good balance sheets. So now it's time you say, okay, what will happen? And that's something you never know. Should you jump from safety to non-safety? Impossible to know. Better to be always ready for anything. What will the governments do? I think they will print money when the occasion comes in Europe, if there is a slowdown, then they will print money. If there is a global slowdown, everybody will do it. So it will have, let's say, an even impact in the world. But if Europe starts printing money, less business, less everything, then it might even lead to hyperinflation if the rest of the world is doing good. So again, uncertainty, we are in an environment of high, high uncertainty. And now we have seen the situation in Hong Kong has been difficult for six months. What are they doing? They are giving 10,000 Hong Kong dollars to each adult on their bank account. That's what governments will do in the future, but we'll see the value of that money and how much it will help. On companies, it depends on the company personal. It depends on you. Now, what's my strategy? Well, I'm a net buyer of stocks. I want to accumulate great businesses, hold them for a long time. And these opportunities, when I see the market 11% down, when I see a hit on the economy, on earnings, likely recession going forward, now I don't buy immediately. I simply will start deploying my money over the next six months, the cash that I have into great investment opportunities patiently, slowly, just improving my portfolio. As I do all the time. Nothing changes for me. Stocks are 11% down. What's the level where they've been a few months ago, six months ago. So it's nothing has really happened from such a perspective. If the market falls 40%, it's down where it was five years ago. So if you build a portfolio of great value of businesses, of dividends, of earnings, of growth, then, well, stock prices are there, but it's not something we depend on. If you depend on that, then we know you're swimming naked and the tide will flush you out. So that's investing, that's what I do, those who want to do and get notified when I do something, see my portfolio, check my stock markets research platform and you have the link in the description of the video below. On the long term, well, I'm very positive that in the next five, 10 years, two years, probably already one year, we will learn how to live with the coronavirus if it becomes the new flu, let's say. The flu kills thousands of people each year and we live with it, we learn to live with it. So this will probably be the same case with the coronavirus and the unfortunate, but likely new viruses that will come in the future. So we have to take the short term out, okay, the world, Europe will be frozen significantly, but what will happen, what will be the reaction, what will be the situation long term is something we have to think when it comes to long-term investing. I'm always positive, if you're not positive, what's the point of life? So I think that over the next five, 10 years the situation will be good if you buy good businesses, businesses that sell things that people need that are cash flow profitable, that have a more competitive advantage. What Buffett has been doing for the past 50 years and will continue to do and what will Berkshire continue to do in the future? That's also what we do on this channel. So subscribe and click that notification bell. A nice chart that I have found related from the Wall Street Journal related to macro events. And you can see that during the event there are significant hits from the fall of France, from Pearl Harbor, from Nixon resigning, from the 1987 stock market crash, from the unfortunate September 11 terrorist attacks, Lehman Brothers. So always negative, short-term negative. But if you're buying businesses, you see that over the long-term and as you increase the long-term, the 10 year later returns are all positive. And that's something that is very interesting to see how short-term, long-term, usually the long-term wins over the short-term. Just a quick look at what's next on the channel. Carnival Cruises, extremely requested video to make in the comments. So I'll give my perspective on it. I'll dedicate tonight probably and put the video on Saturday or Sunday. Then I've enjoyed the Buffett interview. I'll try to summarize that during this weekend and publish it, perhaps also Sunday. And I'll discuss, make a short video on discussion when stocks are down like now. Is it good or bad? You'll enjoy that video. So again, subscribe. Looking forward to your comments in the comment section below. Click like if you enjoyed this video and I'll see you in the next video.