 Investing is most intelligent when most business-like. I think that's an essential sentence for long-term investing success. I perhaps have made a mistake on this channel and discussed a lot how stock prices move and we focused on where the stock will go in the next three six months. I cannot guess where it will go in the next six months. I don't think anybody can. You can bet on it. It's a positive game because in the long-term stock prices will go up but nobody can know. And there is a great link from the movie The Wolf of Wall Street. I have put it in the description below so please watch that. That's crucial to the point how nobody can guess what the stock market will do in the shorter. However what I prefer to do is analyze the business and you can estimate relatively correctly with the margin of error of course what will businesses do. And that's going back to Graham and his sentence that investing is most intelligent when most business-like. So in this video we'll discuss six points that describe that sentence and perhaps you'll like it or you probably won't like it because many of the comments here is okay where can I make a quick gain 20-30-50% in a few months of double-bagger in 10 months. I wish I knew I tried to help you as much as I can. There are some stocks that did go up some stocks didn't some stock went up went down so it happens. However if you focus on the business and you guess the business in the long-term you'll do very well. The first rule is keep things simple. If you understand the business okay then you can invest in it. If you don't understand the business then better don't invest in that business. I don't understand nano, DRAM, chips and who will win in that environment. What will mobile phone phones in the next two years use I don't know and that's why I'm not investing in NVIDIAs or micron or those companies. Perhaps if I put myself into it I really read a month about it then I can understand it. However I don't for now so I'm not investing in those companies. I'm missing out but I think for me if my personal risks are then much lower. Second point focus on the productivity of the asset you are purchasing. For example we discussed Amira the stock price went from 4.7 to almost $7 so more than 50% and then it went back to $5 when I don't know what the market expected. Nevertheless the company is still profitable the earnings were very positive the PE ratio is 5 so if I look at the business performance I am at returns of around 15-20% per year and as they have been so in the last six years I expect them to be so in the next six to ten years. If that really reflects in the long term the stock price my investment returns will be very very good however I need to have patience and if I buy more when the stock market is a rational and offers me at a lower price even better for me I can even rebalance as I did in the past two years when it was at a high price so very interesting to see if you look at an investment from a business perspective everything is much much easier. This leads to the third question focusing on stock prices is speculation so if you focus on where the stock price will go in the short term it means you're a speculator you can be a very good speculator but then there are different techniques that look especially now high-frequency trading and now you need a lot of software power to do that you cannot I think in this environment do that well with just looking at the few charts that everybody else is looking so perhaps if you develop yourself with a few years I'm definitely sure that you can be also good speculator however business like looking at the performance of a business is much much easier I think this leads to number four that the winners are those who focused on the playing field and not who are focused on the scoreboard the SAP 500 really tripled in the last seven years so that's very good but it can half its value in the next six twelve months so if you focus on the scoreboard you can quickly be in a losing position instead of a very good winning position however if focus on earnings you exactly know what is the stock market or this specific business going to deliver in the long term and what are the risks and again it makes investing much more easier now we discuss also a lot of macro trends risks but that's only for positioning ourselves in the trends that are positive and long-term and certain demographics and then finding good businesses that are exposed to those trends I don't know when the next recession will start I don't know whether we'll be inflation whether the Fed's going to rise interest rates what will happen in Korea nobody knows and we can't know and if you follow all those things and position yourself according with your portfolio you lose a lot because in 2012 you would have sold everything because the US was going bankrupt or was it 2011 then there was trouble in Europe then there was trouble in China then there was this and that so if you focus on those shorter macro trends you don't know you lose yourself very quickly and then you can lose a lot of money especially those who sold in 2011 have lost a lot but in 2011 valuations were low and it was a good business decision to invest in stocks number six to conclude really if you want to invest feel like a business owner okay I have this part of a business and then take advantage from the market offering you a price every day don't look at it okay the stock price went up went down I lost I made a gain no though look at it okay the stock price went down I'm happy I'll buy more thank you market the stock market went up and your returns are above the line of return you expect you say okay I'll sell if it comes back down I'll buy again so really take advantage of Mr. markets irrational movements thank you for watching any other rules that we have to follow in order to be more business like please leave them in the comments click like if you liked the content subscribe for more and I'll see you in the next video