 Good day fellow investors. Last week I made a video about China, how one should think about diversifying into China. Based on Ray Dalio's perspective on China, also a video on YouTube I urge you to watch, the video did really well with 14,000 and more views, but I was really surprised by the comments, by the fear that was represented by you viewers in the comments. And this is something extremely important to discuss when it comes to investing. We have fear, we have risk, we have don't invest here and here, and then we have pricing and it's all a gray balance that I want to explain in this video and you see what fits best your investment risk reward and your target returns. So let me first show you the comment. Of course China, Communist Party, not transparent, you should not invest there, even got 21 likes. Well Alibaba fraud with Alipay, Wen Jack Ma decided that Alipay will be a separate entity owned by him and not by Alibaba and Yahoo 2012-2013. That was a clear fraud and I agree with that. So secondly, Dalio is promoting his own interest because he is invested and related to China. Then we have accounting practices, questionable accounting practices and corrupt government. I really advise you to watch the China Hustle on Netflix, a great video about accounting, about fraudulent companies. Then we have the structure of companies, how those are not, you don't really own anything in China as you can't because you're a foreigner, so you have a contract and the companies are usually in the Cayman Islands, it's a controlled economy. Then again, on accounting, you should not touch it until things improve. And that's also what Ray Dalio says, when things improve, it will be too late to invest. And then there is one comment discussing my comment that Europe is riskier than China. The comment got 41 likes and there are excellent points from Cortez. You can read it in the comments, but what's my take from all of this? I agree with all the risks, I really agree with the risks. There is government, there is communism, what's going on in Hong Kong, there has been fraudulent from Alibaba to many, many other companies. But then again, if we go to Buffett, the more you learn, the more you earn. So I'm not saying go to China, put it blindly in an ETF and forget about it. No, I'm just saying explore the options that you can invest in China. And there are five things that I really want to discuss here because I think the fear closes the views on what's really going on and what are the investing opportunities. The first thing we said, diversify into China, diversify. The meaning of the world diversification is not completely understood. People think if they buy the S&P 500, they are diversified. No, to have global diversification, you have to buy a lot of different things with different risk rewards. China is already a little bit more different than the United States. So if you diversify just with a part of your portfolio and then you balance that risk reward exposure, then you are diversifying into China. I'm not saying put all your money into China. No, diversify. Long term diversification will lower your risk and increase your returns. Long term, 10, 20, 30 years over your lifetime, but you have to diversify constantly over your lifetime. Then second, this is a great explanation about fundamentals, about investing, about being greedy and about investing with a margin of safety. Chudian, a company that I invested recently was an IPO in 2017 exuberant 50% growth and JP Morgan and others pushed the stock price to $43. A year later, the stock price fell to $4. And we have been happy buyers because at $43 it was a crazy growth stock. No margin of safety, nothing. And $4, it had $4 per share in cash as it's a FinTech. And we were happy buying and we already made our money as the stock doubled there. The thing is that I went into the FinTech industry in June last year looking at Chudian. I looked at all potential players in China there. It was a list of more than 10. Nine, I completely dismissed because or fraud and frauds happened there and things like that. So the more you learn something, the more you are willing to know about something, then you can get these opportunities. Now it's up to you whether you want to do it with an ETF and then buy China portfolio diversification or if you want to learn and dig deeper by really analyzing what's going on in China. The more you know about China, the more these things fraud and everything will government corruption will become familiar. And then you will see which companies are not like that and which are like that. And you will easily avoid those that are frauds. Then also on fundamentals, if things would be that bad in China, they wouldn't be able to do this. This is their GDP growth in US dollars. So it went from what, $1 trillion in 1999 to $15 trillion in 2020. So 15 beggar GDP in 20 years. If things would be that bad in China, this wouldn't be possible. Then you can have a fixed or dynamic mindset. Things constantly change and people in China are working hard to improve things. And that's what also what Delio is seeing there. He's seeing how things are changing and how his collaboration helps there. So again, without things constantly improving, you wouldn't have these kind of economic growth. There will be ups and downs, but China is still developing, investing into electric cars, into everything. Now, when is the time to buy? So that depends on you. Most people prefer to buy in Goldilocks situations when everything looks great. But the best buys are actually made when nobody wants to buy. If we look at emerging markets versus US tech stocks, 2000 to 2007, everybody was crazy about emerging markets. China stock index exploded five, 10 times or something like that. Since then, since people got burned and everybody went into US tech stocks. Not then, now they are pushing the prices higher, higher and higher. And emerging markets are again shunned. So it's up to you to see, okay, when am I going to diversify into something? When everybody wants to invest, for example, in China, let's say five, 10 years from now, or now when we have seen from the comments, nobody wants to invest. So yes, I'm biased for the last 20 years. I have constantly been buying things that others don't want to buy or better to say don't want to buy at that moment in time. When there will be exuberance, when you have rising stock price, everybody will rush to buy China, to buy India, to buy emerging markets. Now everybody is rushing to buy tech stocks because those go up, those are hot. And that's the story of when it comes to investing. You have 99% the crowd and then you have us, the few percentage points that go where others don't want to go. Also with YouTube, I'm not showing everything I do. I do that on my stock market research platform. So if you fancy such a contrarian, knowledge-based view, please check my stock market research platform. There you have everything that I do, the risks and the rewards, in-depth reports, the knowledge that is behind this channel. This channel, of course, will always be promoting investing mindset, discussing the right investing mindset. And then it's up to you what to do with that, what we think is the right investing mindset. Of course, contrarian investing mindset because over the long, long term, when you are a contrarian value investor that invests with a margin of safety, that watches the risks, not in volatility, but the risk of the business, then you know that over the long term, your risks are limited on the downside and the upside is left to whatever is there. And it's usually pretty, pretty good. Thank you for watching. Let me know if you have any questions on my email, also about the research platform, whatever. And I'll see you in the next video when we'll discuss what's going on with the Fed Jackson Hall speech from the chairman. So please subscribe also to this channel for a different view, a different perspective on risk reward and investing.