 Good day, fellow investors. There have been some very interesting comments and I thank you for that, so please comment, comment, comment. You add so much value to this channel. Today's topics are how to invest in blockchain because there is an interesting debate developing there, how to turn $6500 into a million and then I will discuss why I don't invest into insurance stocks. So let's start with how to invest in blockchain. So Slavomir says how cryptocurrencies may be a joke, but blockchain technology is not. It may very well be the most significant innovation in finances in the last 50 years. So the blockchain technology is something completely different than cryptocurrencies and all the fuss that has was created especially in 2017. Now it's getting lower, lower and lower, so cryptocurrencies were a sentiment play. Now people are a little bit scared what's going on with what they bought in the hype and we later also discussed from $6500 to how to get to a million, how these things work and when do those things explode. It's not that easy to invest, I'll put it in a longer term perspective. Back to the blockchain, there were really, really a lot of scams and still 99% of whatever is going on in relation to blockchain are scams. Let me show you something that we discussed in the past. So long blockchain corporation, usually called Long Island Tea Company that exploded, that had seen its stock price explode in 2017, when they changed their name to Long Blockchain Corporation and the ticker from LTEA to LBCC has seen its stock price decline 93% and even more 95% from the blockchain craziness peak in what was it, I think December, November 2017. The stock is now trading at 30 cents in comparison to the 949 high that somebody paid because the company changed their name and wanted to get funds to invest in mining, I think. Another company that I discussed in December of 2017, I made a video about it and some other blockchain stocks, I wasn't that positive and I was right about it. Look at this, Aero Hive Networks, again a company that changed its name because it was called Hive Blockchain when it was mining, repurchasing, mining operations, usually issuing stocks and then giving it directly to the management that was selling computers in Sweden or Iceland or some Iceland or something like that. Crazy and the result is here, the stock is still okay but down from the 767 that it was when 650 that it was in the hype times. Check the video about my blockchain views back in December, so it's not really easy to invest in the blockchain technology and a lot of that are scams but there is something else going on. Some serious companies like IBM are investing and developing the blockchain technologies. However, IBM's stock price didn't explode because it suddenly became a blockchain stock and the stock is up and down in relation to the market, in relation to what's going on with earnings and normal IBM stuff. So you can get exposure by investing in those crazy companies that go up and down but you can lose everything or on the other hand you can buy IBM which is a blockchain stock but you never know when you will benefit from that. As the purpose of blockchain is to lower the cost of everything, lower the cost of transactions, make everything faster, then also those companies that offer those blockchain technologies will not make money, will not make more money because the fees will be lower, lower and lower. Perhaps IBM will sell the technology, implement the technology but that might come in the next 5, 10, 20 years and then there will again be normal margins because it's just technology and those technological companies have their normal standard margins. So be careful about that and I know it's easy to get excited on a great story especially students get excited on those stories but put things into a longer term perspective and those let's say call them scams really show how things go and when you invest in blockchains just look at the fees that those who are selling you charge and look at the transaction costs that the whole technology has because somebody is making money there and that's a good business. Everything else is pure speculation where you have to find the biggest fool that will pay more than you pay. So really put that into perspective there is time for blockchain the next four decades and this leads me to the next story because you will see how there is time for blockchain and there is time for making millions and how it takes a little bit longer let's see before digging that this is the bitcoin price and plotted with search results google trends and you can see how as people searched more for bitcoins they were buying more but now the sentiment has weakened and so has the stock price. I'm still surprised why the bitcoin who are the buyers at 8000 but there is still strong sentiment but not as strong as it was. We'll see how this ends. It's very interesting for me to analyze human behavior human investment psychology speculation and that's why I follow cryptocurrencies nothing else. As there are lots of you who know more who have invested a lot more of time please share in the comments so that we learn together from this. If blockchain really will work if we invest now 2, 3, 4, 5 years from now or in 10 years we will still manage to reap the benefits so we'll see about that but let's discuss a related story that we can learn a lot from. So Van says how he invested in Amazon in 2003 when the stock price I think was 40 and he sold immediately at 45 taking a nice profit. What he invested what he lost then the 6500 that he made would now be a million so that's a lottery ticket that he missed. However let's see at Amazon's stock price so he bought somewhere in 2003 sold immediately a little bit later for a 20% gain. Now Amazon is 1863 a huge return but let's look at some other points of view. In 2007 so four years later the stock was again where it was in 2003 2008 so five years later the stock was again where it was in 2003 and if I go back to 1998 it took Amazon 10 11 years to get from the 1998 50 back to the 50 in 2009 and this was a winner from the dot-com crisis. This tells me okay to reap really the rewards of the dot-com internet expansion it took 20 years and it really rewarded only those who invested in Amazon or lately Tencent Alibaba but that's for a shorter time so there is plenty of time to invest in such trends if the trends really gain instructions there will be time to invest you don't have to chase chase those crazy scams that everybody is offering now so give yourself time there will be plenty of time to invest in blockchain. On this topic of investing in such high return high potential multibaggers I have made a video about extremistan investments it's in the card it will be also in the end screen and we'll discuss and I'll discuss there how if you give it time even boring investments not Amazon's not blockchain can make 10 20 50 times the return on investment so if you keep that in mind so it's mindset keep an eye open for such opportunities you will find even low risk extremely high potential investments so over 10 20 years a lot of things can happen and you can find that stock that goes 20 50 100 times up in relation to what you paid watch the video about extremistan and mediocristan investment it's an amazing investing lecture then Timu I think is from Finland but I might be wrong says thank you Sven for your great insights as a more general comment I wonder why you seem not to have an interest in insurance companies they currently trade with pretty low valuations and the business is pretty stable even in recessions even in bad weather dividends keep coming in I like for example Munich re-insurance in Germany stable or rising dividends for decades and here I disagree because insurance companies have a low valuation why because there is a high risk and I think it was in the latest annual report that Buffett discussed how if there is a four magnitude in the US now I'm talking four magnitude natural disaster in comparison to what was happening in 2017 with three hurricanes so four times more then Berkshire loses about 20 billion he knows exactly what he will lose and he says everybody else goes bust and that will happen two times in a century so two times in a century 98% of US insurance will go bust that's and everybody's reinsured so you never know how that change of going chain of going bust develops so that's one why I don't invest in insurers because the potential for permanent capital loss is huge there and if I go in dig into what did they do what is their reinsurance I cannot see that I cannot see the complete chain or of insuring reinsuring the risking and I don't trust also their risk management they have kids that go to school use value at risk plotting the data and really behave on what the computer says they don't apply common sense Buffett does and Buffett thinks okay two times in a century I will lose 20 billion in a year and he's protected for that nobody else does it because nobody else cares about the two times in a century potential events on European insurance my mortgage is financed from an insurer that gave me 103% of the value of the home I was buying no down payment no nothing I didn't even have a permanent contract yet it was a flexible contract later became permanent but still so when I see those risks that those insurers are taking when I see what's going on in the European Union it's simply crazy for me to invest for any kind of yield and that's also why the PE ratio is low and will probably remain low because institutional investors big money smart money sees the risks and understands what's going on so really dig deep before investing into an insurer similarly Deutsche Bank you just see it going down down and down and the world might also change for those insurers just an example here American international group it was trading at 1193 in 2007 then it went bust bailed out now it's okay a little bit higher but still you see what can happen with those insurers even if everybody thinks stable dividends for 20 40 years you never know what's behind that and that's something I'm not going willing to risk my capital for that for any kind of yield so the message here is take a century perspective give yourself a few decades for those stocks to become hundred beggars really try to expose yourself with low risk high reward and check my extremistan investments where you can really find low risk high explosive investments that are not blockchain cryptocurrencies or insurance insurance companies perhaps the opposite if you short them at the right time but that's a different story thank you for watching looking forward to your comments and I'll see you in the next video