 Good day, fellow investors. If you are a long-term investors, there is only one rule you have to follow. There is one metric that will lead you to satisfying high investment returns over the long term and over whatever happens in the economy and low risk. At the current moment everybody is focused on growth, on buybacks, on taking a lot of debt, takeovers, whatever is going on in this environment of low interest rates and economic growth. However, where people lose their focus is on long-term shareholder wealth creation and you want to get your wealth created, your shareholder value created. Now, this might sound funny from a stock investor, but looking at stock prices, a stock price can go up in one month and then in the next year it can be just 10% of what it was. So don't get so much attached to what's going on on the stock market, but look at what's going on in the business. Now I know that this is not funny, this is not interesting, this is not trendy because the trendiest thing now is to invest in index funds and the stock market can go only up. So I'm not going to get a large fund base, but I think that I have to say this to whoever wants to listen because I think there are some like-minded investors. The most important metric for an investor is book value and the change in that book value. The change in book value tells you the addition of intrinsic value that the company has given you the shareholder over the last year. And if we look at Berkshire Hathaway's first page on the annual report, the first column shows in Berkshire book value change of Berkshire Hathaway. That is Warren Buffett's focus and nothing else. Then he compares it just for fun to the market value and he has started doing that only in the last two years, so the previous 50 he didn't do that and then he compares to the SAP 500. What is very interesting is the compounded annual gain in the last 52 years has been 19% in book value. The compounded annual gain in the market price of Berkshire has been 20.8%. This means that long-term investment returns are correlated to book value growth or intrinsic value growth. So if you want a metric that will tell you exactly where your investment returns will be in the next 10, 15, 20, 52 years, then focus on book value and the value that is created for you. Everything else is just a trend of Fed that will probably quickly evaporate. So I have seen, I don't know, Enron taking a lot of debt, acquiring everything, trading everything and then going bust. I have seen in 2000s dot-com companies taking a lot of equity, just growing their revenues, not caring about earnings, not caring about increases in book value and going bust. Similarly we have seen in 2008 companies taking a lot of debt, buying houses, mortgages, piling up debt and piling up the collateral and consequently going bust, because there was no value creation in that maniac debt taking. And now we again see companies taking a lot of debt, doing a lot of buybacks, pushing temporary earnings higher, but the book values are going down. The price to book value of the SAP 500 has been going just up, up and up. This means that your value isn't created. Stock prices are going higher, yes, but in the long term that book value is what gives you the returns. This might sound old-fashioned, but this is what has worked over the last 200 years. So it's up to you if you want to follow it or not. It's not trendy, it's not cool, but it is what makes you wealthy in the long term. What's very interesting, I have plotted here the changes in the book value, the blue line with the changes in the stock market price for Berkshire year over year. And you can see how the book value is mostly positive and relatively stable. Nevertheless, the stock price goes all over the place. It's much, much more volatile than the book value. So as an investor, of course, look at the stock price, but in order to take advantage of the irrational market. When the stock price is high, extremely higher than the book value, and the book value creation is not significant in relation to the stock price, then you sell. When the stock price is extremely low and much lower than the book value, then you buy and you take advantage of this irrational market. So really think again how to position yourself in relation to what's going to happen in the next 10 years. Inflation and with inflation, again, book value will protect you from it. If there is no book value, nothing will protect you from inflation. So Warren Buffett keeps mentioning book value shows the change in intrinsic value, of course, plus minus if there is a dividend. I see no fault in his reasoning, while I see a lot of faults in the reasoning in the current market and the current financial environment. History has been on Buffett's side. That is why he has been so successful over the past half a century. Others and many of them have been successful for a short time and then went into oblivion as the situation in the environment changed. It's up to you to choose where do you want to be in 5, 10, 15, 20 years with strong value or risking to lose everything when the situation in the environment changes. Thank you for watching. Looking forward to your comments and I'll see you in the next video.