 Good day, fellow investors. Over the past years, over emails, I really get high conviction comments about investing in Deutsche Bank. And even in the comments in the comment section here on YouTube, I often get comments, what do you think about Deutsche Bank? And after the current developments, I really want to give you my opinion on why I never invested in Deutsche Bank, why I never bothered about Deutsche Bank, because it's pretty simple. A investor should invest within his circle of competence. If Deutsche Bank, the global banking system, derivatives, is your circle of competence, then invest. If not, layback, as Buffett would say, I'm mostly paid to do nothing, and layback, wait for investments, for good investments, within your circle of competence to come to you, and then invest. Let me explain. If we just look at Deutsche Bank over the last decade or more, we see that it was a clear downward trend. And I think that people were looking at stock prices above 15, 2010, 11, stock prices above 100 in 2007, and then comparing to the current price 2018, 2017, 2016, all those times when I used to get those comments. And with high conviction, they were expecting all things will improve, things will get better, it's Deutsche, it's Deutsche. And unfortunately, I never heard from them anymore, but a lot of them invested, and they are now suffering heavy losses. And over the last week, I've certainly got another five emails. What do you think about Deutsche Bank? Should you invest? Now it's good time. You should look at financing banks, et cetera, because Deutsche is cheap. And then how to know whether something is within your circle of competence? Read the annual report. If we look at the annual report of Deutsche, yes, it has 448 pages of a banking report. So you start, you read it, and if you can clearly understand the risks and rewards of what the bank is doing, compare to the stock price, then you can know whether to invest in it or not. So let's take a look. On page 145 of the 2018 annual report, you have a description of the derivative business. So notional amounts of derivatives on basis of clearing channel and type of derivative. And if you look at all those derivatives, if you can understand them, then feel free to invest in them. If not, well, avoid this. And if you look at the sum of the derivatives at the bottom here, it's 43,449,514 million euros. So compare that to the market capitalization of 13.6 billion to translate the derivative amount is 43.4 trillion euros. 43.4 trillion versus 13.6 billion euros of market capitalization. If you can value that, you can invest in Deutsche. If not, when it comes to some investments, it's simply better to stay away. For me, it was pretty simple. A professional investor 20, 30 years of experience simply said it like this. Deutsche Bank usually gets the deals that are a bag of worms that none of the others, Goldman, JPMorgan, Citi, etc., want to touch. And then Deutsche comes in and takes those deals. And therefore, after things change in the environment, you get into trouble, which is exactly what has been going on with Deutsche. Just back to the risks. It's too much for me. When it comes to Deutsche, the risks are simply too high, too difficult to analyze and there is the risk of permanent capital loss. What's the 1% loss on the derivative portfolio? 1% of 43 trillion is 440 billion, thus 30 times the market capitalization. I have no idea what will happen, but my message is simple. If something is not within your circle of competence, don't invest in it. If you want to make it your circle of competence, I'm sure you can make money on DB, be it shorting, be it going up, be it going down. But it's a very difficult way to make money and I prefer as investors, as a retail investor, a more laid-back approach when we know to look at the business with better margins of safety, less risk, no derivatives, tailwinds, future tailwinds, no euro exposure, etc., etc., that give us more certainty to make money in the long run and, as Buffett would say, The first rule of an investment is don't lose. And the second rule of an investment is don't forget the first rule and that's all the rules there are. I mean that if you buy things for far below what they're worth and you buy a group of them, you basically don't lose money. So that's it. If you want to speculate on Deutsche Bank, be your guest. But don't ask me what do I think about Deutsche? Or here is my answer. What do I think about Deutsche and why I don't do anything about it? Thank you for watching. This might be the most important video that I have done in a while because investing is mostly about saying no, no, no, no, no, no. And only when something really meets your criteria then you take your hard-earned money and then you put it into that business, not the stock going up or down or looking cheap from a best historical perspective. To conclude, you should really leave DB to professional investors, hedge fund investors that understand the risk reward better, that approach it in a statistical way. So they have 10 banks like this, Greek banks, Hong Kong, Kyle Bass style of investments. And they have the legal power. They have the political connections. They have the long-term orientation. They have the capital to know how to invest and how to get out with minimal loss or low risk or even no risk and higher reward. They buy the derivatives. They hedge themselves and things like that. That 99.99% of us of the 41,000, 2,000 subscribers cannot do. So this is the message. Thank you for watching. Looking forward to your comments and I'll see you in the next video tomorrow.