 Good day, fellow investors! We continue with the summary of the margin of safety by Seth Claremont, which is by far one of the best books on value investing out there. However, it was written 30 years ago, so I'm trying to eliminate the things that are not so relevant now and focus on the eternal knowledge value investing knowledge that is in there. Let's start with chapter 5. Chapter 5 discusses how you have to start with your investment goals. Warren Buffett's investment goals are pretty simple. Don't lose money, don't lose money. And that's the core of value investing because you're investing with a margin of safety. Let's see what Seth Claremont has to say about value investing first and then in the next chapters about how to find business value, what is margin of safety. So please subscribe. Claremont explains about the rules that it doesn't mean that you shouldn't incur risk, just that your portfolio shouldn't be exposed to appreciable loss of principle over several years. It can be hard to concentrate on potential losses while others are greedily reaching for gains and your broker is on the phone offering shares in the latest hot initial public offering, Uber, Lyft, Ringabelle. Yet the avoidance of loss is the surest way to ensure a profitable outcome. So value investors avoid loss. They don't invest in stocks like NIO and things because there is a potential for loss. And we'll see later why that is so important. And then the actual risk of a particular investment cannot be determined from historical data. It depends on the price paid. That's the key. If enough investors believe the argument that equities will offer the best long-term returns, they may pour money into stocks, bidding prices up to levels at which they no longer offer superior returns. SAP 500 close to all-time highs, returns expected from stocks 5%, which is highly risky, as we discussed in the stock market news on Friday. Claremont continues by showing the beauty of compounding and he emphasizes how it all quickly evaporates if there is a sizable loss, which, if you don't think about risk, always happens. Therefore, one must focus on avoiding losses at all costs. 6% for 30 years, 1,000 becomes 5,000. At 15, that's 16%, 1,000 becomes 85,000. However, very nice comparison. An investor who earns 16% annual returns over a decade, for example, will perhaps surprisingly end up with more money than an investor who earns 20% a year for nine years and then loses 15% the 10th year. This is crazy to think and everybody thinks the SAP 500 is such a great investment now, but nobody focuses on risk and therefore this is so important because just one loss of 15%, even if you did very, very good or 30% in the future, will erase earnings for those who don't think about risk. As would Claremont say, the second investor will outperform the former nine years out of 10, gaining considerable physical income from this apparently superior performance. And all you need to know when it comes to investing from Claremont is the following. In the long run, however, stock prices are also tattered albeit more loosely than bonds to the performance of the underlying business. If the prevailing stock price is not warranted by underlying value, it will eventually fall. Those who bought in at a price that itself reflected overly optimistic assumptions will incur losses. Most investment approaches do not focus on loss avoidance or on an assessment of the real risk of an investment compared with its return. Only one that I know does value investing. We continue with value investing with the following chapter number six in the following video on Claremont. Thank you for watching, looking forward to your comments and please subscribe. I think these are the most important videos because they give you everything you need to know for your investing lifetime. Avoiding risk, value investing, margin of safety. It is boring, nobody does it, nobody does it. That's why it works that well.