 Good day, fellow investors. Now, this will be a rant against the investment world where the index fund, the pension fund investor is the sucker because he is usually the last one buying in the investment chain. So, he is the fool that's paying the highest price. And I want to show you a little bit more in that by explaining what's going on now with end financial, the Alibaba IPO and to show you how things work in the investment world and how the index fund, the mutual fund investor, the pension fund investor really pays the highest price for the lowest value because he is last in the chain. So, recent news came out that Alibaba just closed the 10 billion financing round for end financial, the operator of China's biggest online payment platform by market share. The deal valued early pay and financial at 150 billion and this is an excellent example to show how the little investor gets screwed. So, funds that invested, according to Reuters, are Singapore's wealth fund, GIC, PTE, Temasek Holdings, private, US private equity firm, Warburg Pinkus. So, mostly private funds. And now, what's going on? Alibaba will make an IPO of end financial which will have, it already has a 150 billion market cap. Let's say that in next year the company does well and the IPO is 300 billion. So, it will be a very big weight in indexes across the world and then pension funds will invest in the IPO. So, at a valuation 100% higher than these funds invested today and the last valuation of end financial two years ago was 60 billion. So, it will be at 300 billion five times higher than what these funds paid just three years ago, two years ago. So, the pension funds will invest at the IPO and then, as it is a high market cap, index funds will immediately increase, have a big weight in that stock. So, even index funds will buy, but they will buy really at the last point in the chain. So, that's one way how you're not really getting the real value. The real value is created and gotten in the beginning, not at the late stage. And then, if there is a crisis slow down in China, you see those IPO stocks really drop like a rock. We haven't seen such a crisis a little bit in 2015, 2016 when there was a lot of damage, but not real damage because it recovered. Further, there's something very interesting, Yahoo, Alibaba and financial. So, if you owned Yahoo, as a pension fund did in the past, you think you own Alibaba and you think you owned end financial, but in 2012, Jack Ma just spun it off and then negotiated to give 37% of rights on profits and that will be turned into ownership of 33%. Alibaba owned 100% of end financial that was owned partly by Alibaba, was owned by Yahoo and then Jack Ma simply decided to spin it off. So, investors from Yahoo really got hurt there because instead of owning 150, 300 billion company, they will own just a part of that because Alibaba owns 33% of that. So, there is 100 billion, 200 billion for Yahoo pension fund investors, part of that, that went into smoke. So, that's again how, again, if you are a pension fund buying the largest cap, market cap like Yahoo was back then, then you again get screwed and then when Alibaba was at low price, those index funds were selling Yahoo because the stock price fell over time. So, that's the second point how investors get screwed. And my third point is extremely important. This is the biggest point. I'll give you an example of where I come from from Croatia. So, you have pension funds, four pension funds in Croatia where if you all have a job, you have to invest part of your salary in them. And they take your money, they have a fee of about 0.8% per annum but 60% of their capital is invested in government bonds. So, yes, you pay 0.8% per annum to invest in government bonds, which is crazy. The government could do that without those pension funds and without the 0.8% fee. So, that's a system installed by Wall Street that unfortunately is like that and that's not only in Croatia. Berkshire Hattaway employees cannot invest in the cheap index funds that Buffett is always promoting. They have to invest in actively managed high fee funds in order to fuel the system, probably buy Berkshire more and buy stocks related to Berkshire. So, really think about what is the fee you are paying and is your pension fund high fee or low fee. If it is high fee, switch. You can do a much better job to go low fee and not pay for nothing and not pay high fee to be the last in the investing chain. Thank you for watching, looking forward to your comments and I'll see you in the next video.