 Good day, fellow investors. Something that's rarely discussed, but crucial when it comes to investing, are investing mistakes. And everybody does investing mistakes. I make investing mistakes. And in this video, I want to discuss my latest investing mistakes, why I made them, how I solved them in a way, what good, what bad did those bring me. And then it's all a game, it's all a game of balancing things, trying to balance risk and reward and how to try to avoid mistakes is the key. Don't lose money, as would Buffett say. So let's start with my investing mistakes. So here are my mistakes. The first investing mistake was Facebook, of course. I bought the first shares, I think, in 174 a year ago after the drop, after the scandal, because I thought the price was okay, the return will be okay. So then after I bought for 174, the stock went to 120. So that's a 30% decline. So that's a clear mistake. I could have waited for 120. Now, the second mistake, I bought Qudian, the Chinese, recent Chinese FinTech, IPO at around 11, but then the financial government implications were terrible. A lot of companies were scams and didn't really perform well. And then after a few months, I was down 70% because the stock price hit 4. So Facebook 40% down, Qudian 70% down. Then another investment that I bought, because in 2017, 16, 15, I did really, really well on those Chinese IPOs. And then I bought another CQ, I bought it at 9, and now it is at 8, so not so good. Let's say another mistake because I'm holding it for a year and it didn't go anywhere. And I didn't sell when it was at 14. Then another mistake, Alacer Gold, a gold stock that I was following, covering, I knew it was a good business that it will explode. And then I bought at 190 something in dollars in this case. It went to 150. I didn't buy more. And then I sold at 290. It fell lately, but then it went to four. So I missed on the upside. I didn't buy on the downside. So it went down. So mistake, mistake, mistake. So that would all be characterized as mistakes. Now, how do I deal with those mistakes? That those are normal to happen. But if you have been following this channel for a longer time, you know that it is all about risk reward, comparing the risk reward, knowing what the risks might be and what you will do in case that the risks materialize, then also when it comes to individual stocks, risk and reward, but then you have also your portfolio. How much cash you have compared to the risk of what you own, that's a very important connection. And then what are your portfolio actions, the diversification, the volatility also of the stocks to gain, to take them as opportunities to buy more or to buy to start buying. So that's how I manage. And in this second part, how I dealt with my mistakes, I'll show you what I mean by the four things that I just mentioned. So on Facebook, I simply bought more with 136 I think was the second buy. And here I just bought in my model portfolio that I started a little bit more than a year ago with 10,000 and where I add 1000 per month. So Facebook was not in my lump sum portfolio because too risky for me, no margin of safety. In the growth portfolio, let's call it like that, I am happy to buy it because I simply added more. The mistake was solved when the stock price went up to 200 and I recently sold and that's another mistake. If it goes to 300, everybody will call me, oh, you made another mistake. But the risk was too much. I needed some cash in the portfolio to take advantage of other things. And simply that's why I sold, not because Facebook is a bad investment. So I have the cash flows, I add the cash flows each month here so I can balance this position, the volatility of the positions and I can cover the mistakes as long as the business is good. Now, Kudian, a very risky play, Chinese IPO, it was 30 something, it went down to 10, I calculated that the growth will be 15%, it will be okay. So at 10, I thought back a year ago, it will give me a 10% return. I would be happy with that now, not anymore now, but 15, 20, but then I bought a little bit. When it went down, I checked the business, I checked everything, did anything change? I bought more. I didn't buy it in the lump sum portfolio, I bought it just in the growth portfolio, but when it hit $4 per share, which is in line with the cash per share, then I bought much more. I bought it even for the lump sum portfolio because at cash per share, it offered a margin of safety. So only when there is low risk and high potential return, I buy more. Now I already sold part, I'm still holding a little bit. But this is the balance and this is one of the biggest contributors to the portfolio because it went down and then up and I dared to buy more. I was ready to buy more and I was understanding the risk and managing those risks with portfolio exposure. CQ, Chinese Play, I simply made the mistake then, there was all the China, Mambo Jambo, Trade War and everything. I started the position with almost nothing a year ago, so $200, I think I'm down 20 bucks on it. But still the message here, I didn't add to the business, I started it, I learned about it and we'll see about selling or holding or waiting or I don't know. It's such a small position now as the portfolio grew so that I didn't do much with it. So I'll keep doing mistakes, there is complete guarantee about that, but it's also about portfolio managing about those mistakes. Let's put it like this, let's say that I have eight positions in the portfolio, which I have and over the next few years, I think four will double or more. Three, let's say will give me a 10% return per year, so let's say the 30 that I invested will become 40 and one will be a total disaster. Let's say it goes 50% down, I was wrong on the business, I was wrong on the management, it was a fraud or something like that. When I sum those things up, the 40% that 14 invested in good businesses that double or more will become 80, the 40 we are at 120 and then the one that goes bust goes bust, so the 10 invested goes to five or let's say we lose all, we are now at 50% more, add the dividend yield of 5% that I just discussed in a video, it is 10% plus 5%, we are at 15% returns, even with one huge mistake. The key when it comes to investing is to lower the investment mistake as much as possible and my simple strategy there is to do as much research as possible to know more, to be careful, to carefully watch what's going on. I follow some companies for five, six years and I try to understand them as much as I can to avoid risks when it comes to investing. Don't lose money, don't lose money, there is nothing else when it comes to investing and if you do that the upside will come by itself because A, stocks are generally volatile, up and down, B, businesses deliver returns, there are dividend yields so you start accumulating and compounding those returns. The key message is always before investing what can go wrong, what can go wrong, what can go wrong and if it goes wrong what can I do about it, what will I do about it and do I have the means to do something about it. Warren Buffett invests in banks if something goes wrong, oh here is 10, 20 billion convertible stocks at a 9% interest rate because he has the money to do that so he can manage the risk of investing in those banks like he did with Goldman and everything else. So that's the reason that I can't do so you have to always ask what are the risks and how then you can manage those risks. That should be the first focus when it comes to investing and that's the reason why I don't invest in Tesla for example because Tesla can go bankrupt and what would I do if Tesla goes bankrupt? Well I lose my money and I cannot add more and one of the best portfolio management strategies that I have is to be happy when something I own goes down but to be happy when something I own goes down I must be sure about the margin of safety, about the quality of the assets of the business etc. So and then you always balance it with higher portfolio or lower portfolio exposures. So also there is always the cash cushion in the portfolio. It's bigger when there are smaller opportunities, when there will be less opportunities, more opportunities, 2009 March opportunities there will be no cash in the portfolio and then I will simply reinvest the dividends and take advantage of what there is because dividends go up usually in a crash. If you want to follow my investing mistakes, if you want to lose money with me on my investing mistakes check my stock market research platform where you have all my portfolios, all my investments, all my trades are notified in 20 minutes and I'll do my best to try to lower the number of mistakes as much as I can. I can promise you on the other hand there will be mistakes that are given. So at the end I hope that with the management, with the cash, with the buying more, with the taking advantage of the volatility with the carefully assessing risks the returns will be positive over the long term especially when adjusted for the risk and reward of investing in businesses. Thank you for watching, let me know if you have any questions in the comments below and I'll see you in the next video.