 Good day, fellow investors. Dr. Michael Burry, very famous from the movie Big Short and in the investing world even more famous for shorting the housing bubble in the 2000s where he made a lot of money, is out with a new, very interesting investment thesis that we are in a passive investing bubble created by index funds and that we as investors should look for un-looked opportunities in small caps. So in this video we're going to discuss a little bit what's going on in the passive investing bubble that he describes and then look at what he is looking at to see for investing opportunities away from where the herd invests. Let's start with the passive investing bubble, the index fund bubble. There was a recently really good article on the National Bureau of Economic Research about the specter of the giant free. The giant free index funds corporations, the giant free holders, creators of all those ETFs. So if you look at the list of the largest ETFs, you have State Street Global Advisers at the top with the SPDR SAP 500 ETF, then you have BlackRock, then Vanguard and then you have all the others, one is just in Vesco, but most ETFs index funds are under just free companies. So under the umbrella of just free companies. And if you look at the percentage of corporate equity held by the big free index, so Street State Global Advisers, BlackRock and Vanguard, they own 20% of the SAP 500. So they vote for those shares, even if you invest passively, they still vote, usually like the management. So there is really no pressure on the management, lower and lower pressure on the management, which leads to a bubble and more and more people invest in these vehicles, which then pushes these vehicles higher and higher based on not business performance, but based on the herd moving, the behavior of the herd. If this trend continues, the article expects that in 2038, 33.44% of the SAP 500 will be owned by just the three big companies. When you add the pension funds, the other index funds, etc., all that invest mindlessly diversify into anything, then you see at what scale we are within the passive investing bubble. So to quote Michael Burry, the bubble in passive investing through ETFs and index funds, as well as the trend to very large size among asset managers has orphaned smaller value type securities globally. There is all this opportunity, but so few active managers looking to take advantage. So what's the message here? It's simply the core of value investing. The core of being a value investor is being a contrarian because only by being a contrarian you can find value. So you have to look where others don't look. Simply so much money is going into those index funds, ETFs, mindless investment vehicles. And on the contrary, the real investments, the small investments where you invest in businesses, not stocks, SAP 500 stocks, and you have real businesses where you buy an equity stake in some small cap company, that is where the opportunities lie. And that is also something where we on this channel we are going to focus on. Probably next week, Sunday, I'll discuss GraphTech. The company Monish Pabrai has invested significantly recently, which looks undervalued. And all these undervalued companies, you have to really understand the business. It's not an SAP 500 story. So I have to dig deep into those SAC fillings, into those 10 Q reports, annual reports, and try to see what are the risk rewards to put it into perspective. So to explain, I can explain it in on the video here, but let's look at Burris Holdings. That GameStop, the video game seller and tailored brands, he's taking an activist approach there should do more buybacks. So the stocks have been hit and they have cash and he is betting on them. He's also betting on South Korea, small cap companies, as far fair, outage companies. And he also engages with the management to try to actively move those companies to improve relations to other shareholders. Also, he says that Korea has so much potential, but it is always cheap. And he's trying to educate managers there to increase those valuations to a global level. So the core messages of this video is that value investing is being a contrarian and that you have to look what others are not looking and that others are not looking in small caps. And while others are looking completely at the large companies, more and more money is going there because it worked well over the past 10 years. That's normal. 10 years of outperformance for growth stocks and then 10 years of value outperformance comes back. But only when nobody's looking at value and very few of us on this channel, so please subscribe if you haven't, are looking at such stocks. Thank you for watching. Subscribe short video, but to the point video, we have to look into Korea. We have to look into other small caps that are overlooked by the market and that is where the real investing long-term opportunities are. So thank you Michael Burry. There is hope for us and we just have to keep doing what we have been doing and we'll do very well as we did in the past. Thank you and I'll see you in the next video.