 Good day fellow investors. I hope you're doing great today. Three topics today. How inflation is very important to look at from a lifecycle perspective, even if it seems that it doesn't matter now. Secondly, how I protected myself from inflation over time. And that's the key whenever investing. When you are accumulating wealth, it's important that you do it over the long period of time. And even important and picking the right stock is to make the right financial decisions that seem right at the right point in your life. You will have huge opportunities, maybe 10 huge opportunities in your lifespan. If you pick five of them, you will be rich after 20, 30 years. If you miss on those, but you pick the best stocks at the wrong time, you won't do that good. Back to inflation. Number three, what are the opportunities to hedge yourself now from inflation? Let's start. We first have to ask ourselves what's going on in the world today. The answer is simple. Central banks have pushed so much liquidity into the system, printed money that everything looks great. As technology developments plus huge investments, thanks to low interest rates, keep prices down and disable inflation does allow banks to print money and put even more money into the system. Central banks have quintupled their assets in the last 10 years. This is crazy and this shows what can happen in the future. Another quintupling, you will see huge inflation, possibly high interest rates, and you should be hedged against that potential that can happen. However, nobody knows what will happen. Perhaps we will have the same situation as we had in the last 20 years. The average inflation in the last 20 years in Europe was 1.72%. Doesn't seem high, but it accumulates over time because it is 40% over 20 years. Similarly, in the United States, inflation was a little bit higher, 55% over 20 years. This means that if you could buy something for $1 in 1997, now the same item costs 1.55. And this is just the reported inflation. There is one video that I did about inflation, how the actual inflation rate is much, much higher. So you should be protected against that. If we go further back in time, 50 years, one item purchased in 1967 for $1 now would cost $7.45. A 645% increase. Now, how to protect yourself from inflation? You can buy a 30 year long treasury with a 3% yield, but inflation goes up, you're not that protected. That's a huge risk. You can buy a short-term treasury bond with 2% for one year, and then you can be flexible next year if inflation is higher or lower. Or you can buy a treasury that offers you inflation protection, tips they are called. But that's just to protect yourself. That's not really an investment. So as we don't know what will happen, central banks target an inflation rate of 2%. So everything that we do has to be targeted, so that or we take advantage of that inflation rate of 2%, or we are protected by earning higher yields, because you don't want to lose your purchasing power over time. So what did I do? Three years ago, I decided to buy a house in the Netherlands where I live, take a mortgage, take a fixed interest rate mortgage, because inflation is there to enable governments to pay off their debt easier, because they get more and more revenue from taxes as the inflation is higher, but their obligations, their liabilities remain fixed. So I thought if I do the same, if I put myself in a position as a government with a lot of that, then the governments will help me pay off my mortgage over time. And if inflation stays at 2% over the next 20, 30 years that I have to pay off my mortgage, I will do well because my payments are fixed, because I took a fixed interest rate mortgage, but my income is supposed to grow at least 40%, 50% thanks to inflation. So that's one way I protected myself. One note here, I'm not telling people to rush into buying real estate here, because when I bought real estate in the Netherlands, nobody wanted to buy real estate, prices were declining, but rent prices were soaring. So there was really an inflection point and I really was there in a lifetime and took advantage of the opportunity presented there. So I know you always want actionable ideas now, but investing is more about taking action when it is the proper time to do so, perhaps once in five years, not constantly, constantly finding investment idea. Buffett is happy if he buys one or two companies per year. So why do we think that we can find good investments every few months? So think about that also when positioning yourself, protecting yourself from inflation. Just to show you when I bought the house 2015 in the Netherlands and you can see that the number of sold houses per year basis was really, really low. Then in the last three years, as prices exploded, even to 100%, the number of sold houses doubled, which means that people don't like to buy when prices go down. And now that prices are at multi-year high levels, everybody's rushing in to buy. And that's the rationality you have to take advantage when investing. As Benjamin Graham says, you have to buy from the pessimists and sell to the optimists. So if you want to head yourself by investing in real estate, it's the same as investing in stocks. You find an area that has positive demographics, you find a piece of real estate that has a mode, you look at 1000 similar pieces of real estate, you try to find the 10 interesting price value, mode, long-term value, renting out possibility, whatever. You make five offers much below the asking price and then you buy one, the only one that gets the offer accepted. That's very difficult to do now in this crazy market. But I want you to keep this in mind for when the next opportunity in your life comes. So if you didn't head yourself three, four years ago in the US or in Europe, or perhaps you live somewhere where it's still cheap to buy real estate, also possible. So think it from a long-term perspective. You don't have to rush and to do something now, you can sit back. Okay, I have now this tool in my investment skill set and I will take advantage of it when the opportunity comes. Other inflation hedges I have discussed silver in a recent video and how it is a good risk reward inflation hedge. A hedge means that if nothing happens, you will probably lose money or you will probably underperform the market. But that's what a hedge is. However, if there is huge inflation, you will outperform the market. Therefore, it's enough to have a small part of your portfolio, perhaps in silver or in silver or gold miners. And I have also that I have invested in some gold miners. And I'm looking now at silver miners for more diversification. There are other inflation hedges like owning commodities, real assets, hard assets, which few of the companies of the stocks now on the SAP500 have. So I wouldn't consider stocks now as an inflation hedge due to high valuations, extremely high price to book ratios and everything. Thank you for watching. See you in the next video.