 Good day fellow investors! This video will be about how investing usually works and how boring it is, how time-consuming it is and how difficult it really is. Investing is not the walk in the park, it's not playing tennis with your peers, investing is playing the U.S. open. And that's something I want to show you how usually you work hard to find nothing. But that nothing is a small milestone that compounds over time because investment knowledge compounds over time. Let me show you an interesting story about a very interesting stock that ended up being nothing. I spent six, seven hours to look, to read, to put the whole picture together to end up with nothing. And this will be a very interesting story for all of you who are your own investors, do-it-yourself investors, to see okay this is what investing is. Mostly a lot of work for nothing, but a great story and a small addition to the knowledge compounding that we do on this channel. The company is Global Ports Investments, which is a port management-owned company in Russia. As you know I have been researching stocks in Russia and I like to look at each one stock because I don't trust screeners. I need to know what those that look at the numbers, everybody's looking at the numbers. I need to go beyond the numbers. I need to go beyond the story. And this port operator in Russia is owned by Marsk, the biggest global shipping company. It's dealing with Vopak, a very big Dutch tank operator globally again. So it looks legit. APM terminals owned by Marsk, 30% of the company. They have ports in the Baltic basin and the far eastern port. And the fundamentals don't look good at all. So those looking at screeners would say oh this is a terrible business, high price to book, no dividend yield, high price earnings ratio, even negative earnings over the last few years. And if you look deeper you will see that the loss is due to the equity method accounting as they impaired Vopak EOS, the Estonian liquid terminal as the Russians aren't doing business with Estonia that much which leads to negative net income. So wouldn't come out in your screen as a cheap stock but the free cash flow is extremely high. And this is what attracted me in the story. Okay we have free cash flows of 300, 200, 150, 150 million US dollars on a market cap of 450 million US dollars. So that's a 33% free cash flow, free cash flow return which would say okay this is a great investment. Then I'm looking okay what are they doing with the cash and they say they are repaying debt. They say in the presentation that net debt is 800 million and it was lowered by 500 million in the last five years. So okay I say if with 150 million free cash flows they pay debt for another three years we are at 400 million, their interest rate is 89% which would lead to costs of 40, 45 million. So 100 million in free cash flows. I could expect the dividend of 20% somewhere in the next three four years which would bring to a re-rating of the stock and everything as the stock is at all time lows. However what they present in their presentation isn't really the case in reality because of a little trick. If I look at the balance sheet the borrowings long-term 941 million, short-term part of it 66 so the borrowings is still at 1 billion and over the last five years the borrowings didn't if you look at the annual report of all they didn't really go down by 500 million they go went down by 150-200 million so 30-40 million per year. And why is that? Because in the debt repayment that they are doing they are including on 1 billion they have to pay 90 million in interest and they are including that 90 million in interest per year into their debt repayment strategy. So it's not that they will repay 150 million of their debt per year and then half half it practically in the next three years start paying out dividends they are paying 90 million per year in interest rates so that's a cost and they are lowering their debt by 40 million per year. So it will take another 10 years with business as usual with good businesses no crisis in Russia no rubble strengthening or something like that to repay their debt which means that we can expect only something good from this in 10-15 years which is not the rate of return I would expect and this is okay I really read through everything to the company to understand is there some potential is there something the market doesn't see no in this case the company was overvalued in the past the market now sees it really clearly and gives it a fair price for the risk for Russia so after six hours a morning looking at this you say simply no and then you continue with your list where the majority is no no no no no and perhaps here and there you find something to watch put on your watch list and then you invest in it maybe at some point in time and this is what all the great investors were doing we discussed Warren Buffett's letters in a recent video and while doing that I was reading he was also in the 60s he was working through Christmas now we have more information so I don't really work through Christmas but I work most of the time most of the day and I hope to do that for 10-15 years because if you want to be the best you have to put in the best effort you don't win the US Open by playing a little bit with your peers after work you win it by dedicating 15-20 years of your life 10 hours a day training and people underestimate that if you want to really win in the investing game you have to do the same with investing the great ones dedicate that and that's what I'm doing and I'm very very happy that I can do it if you cannot invest a significant part of your time into investing then you have to think okay what are my what is my potential and what is my risk and where can that lead me because I get a lot of emails when what do you think about this junior minor about that junior minor about people that don't understand anything about mining how the cycle works what are the prices they just see a nice presentation a nice article somewhere and I think it is investable you really have to understand to go there and to get higher returns and that's something that's the main message of this video invest by thinking okay what are my limits what are my risks what is the potential reward and what can I do in relation to that how much time and am I willing to invest into my investing a to become good to read books and then accept the rate of return in relation to the time invested if you have absolutely no time index funds over the next 20 years expect four percent four five percent per year okay no time investing bonds three percent inflation minus two minus three so one percent if you want to balance the risk between bonds in the stock market if you have a little bit more time okay I'm going to find 20 good businesses and then focus on that portfolio balance through that portfolio learn about 20 easy businesses Facebook Kraft Heinz Beijing capital airport that we discussed things like that okay seven eight percent returns we are now there perhaps something will be do better Facebook has the potential so if you really want to go double digits 10 15 18 20 percent Buffett said Claremont Ray Dalio then it is full time five 10 years to learn and then you start compounding that knowledge so just put things into perspective where are you let me know in the comments where are you and whether your input time investing matches your investment return expectations thank you for watching and I'll see you in the next video