 Good day fellow investors. Today we're going to discuss a strategy that I think has the highest probability that you really make a profit when investing. Now 99% of the investing population are speculators, especially now and in this exuberant market. However, if you are one of the 1% that really looks at investing and really looks at how to increase your wealth in the very long term, then you need a strategy that will give you certainty that you will reach your financial goals in your investment horizon. And today we're going to discuss exactly that. For starters, if you want to guarantee that you will do well over the long term when investing, you need to invest in good businesses that have a sound business model that have proven them in the past and that there is a high likelihood that they will do good in the future. One company that I think is one of the best companies and it will serve as a great example is Berkshire Hattaway of course. However, Berkshire's stock price is now almost at $300,000, which is again four times higher than it was in 2009. The price to earnings ratio is 26, which is a little bit higher than usual, but the reason behind that are the Hurricanes from 2017 that increased insurance payments and therefore lowered Berkshire's earnings. Nevertheless, the price to earnings ratio is 26, which gives an earnings yield of 4% from investing in Berkshire. Okay, investors 4%. If you want 4% investing Berkshire over the long term, you will definitely get that 4%. In addition, Buffett and Munger aim for Berkshire, given its largeness now, to get a 10% earnings growth over the long term. Now, if you look at earnings from 2008 and now we can see that they managed to achieve a 7% earnings growth and to be conservative, I would give Berkshire a 7% growth over the very long term. So, if I put that into a model and estimate 7% earnings growth over the next 10 years, of course, that growth won't be linear because of recessions and insurance issues. Nevertheless, I think they will hit that 7% growth rate, whomever is at the helm of Berkshire and we can see that earnings will hit 23,000, 24,000 in 2028. Now, a lot of things can happen in the next 10 years and perhaps in 2028, the price earnings ratio for Berkshire required won't be 26, it will be 14. Nevertheless, given the quality of the business with earnings of 24,000 and a price earnings ratio of just 13, your investment will be at 310,000, which is still better than the 300,000 now. You would say, okay, it's over 10 years, the returns will be very, very low. Yes, but many other investments we'll see in that scenario drops of 50, 70%. So, quality business and earnings yield. The earnings yield is what will give you your returns over the very, very long time. And now what's very, very interesting, if we look at the CAPE ratio, price to earnings ratio that is cyclically adjusted and takes 10 year average earnings, we can see that it's very, very volatile. Perhaps Berkshire's price to earnings ratio is 2028 will be 13, but in 2040 will be again 26. And then you look at 600,000 stock price. So that's a good return. So you have to be patient, look at the earnings yield because that is what determines your long term returns and have a long term horizon in order to take advantage of the fluctuations in stock market valuations. So that's one, invest for the long time, good business, okay. However, if you want to lower your risk, because if you invest in Berkshire now, and we have seen that the stock price was four times lower just eight years ago, so it might happen again. So that's a risk. If you want to limit that risk, then you have to invest in stages. And that's the second tool for guaranteed wealth creation when investing. For example, you consider that a 4% current earnings yield for Berkshire is a little bit risky. A 6% earnings yield is okay, while an 8% earnings yield would be an absolute bargain. What you do, you invest 33% off what you intended to invest in Berkshire now, add 33% if the yield gets to 6% and be fully invested if the yield gets an 8%. In the meantime, the rest you can keep it in short term treasuries to be protected for inflation or diversify around different treasuries with different maturity dates, which is something we'll discuss in another video. In the long term, the markets required earnings will be very volatile. And with such a rebalancing strategy, you will make definitely a good return with low risk even lower than just investing for the long term in Berkshire. So it's up to you how do you feel about risk, what's your risk appetite, and what is your strategy. However, we are talking about investing here and practically guaranteed long term returns. Now, let's say you take this investment strategy in stages and you invest 33% of your money in Berkshire now, and then it goes to 400, it goes to 500,000. Well, that's possible. And then you would feel bad. You shouldn't because the most important thing when investing is not getting on a train that goes higher. It's not getting under a train. And with a strategy that invests in stages, looks at earnings and their yield, you have a guarantee that you will not get wiped out. And over the long term, you will get to satisfying stable long term returns. If you have a financial goal like retirement where you can't risk anything, then this is the strategy to use. It's a simple strategy. It doesn't have to be Berkshire. It can be a portfolio of globally diversified stocks. It can be US diversified stocks if you are from America and the dollar is your main currency. So see what best fits your portfolio and what will lead you to your investing goals. Thank you for watching. I'm looking forward to your comments and I'll see you in the next video.