 Good day, fellow investors. Over the last weeks, there has been a very interesting battle going on between David Einhorn and Elon Musk. David Einhorn is the famous short seller when it comes to Tesla and Elon Musk is refuting his thesis and I think that there are three key things that we as independent investors can learn from either position. I'm not going to go into who's right, who's wrong. I'm just going to give you three key takeaways that are going to improve your investing, your long-term investing returns and this is an excellent story to learn about investing and how to protect yourself and how to increase your long-term returns, which is all this channel is about. So please click that like button and subscribe. The three key things that we're going to learn from this are one, we have to be long-term investors. That works all the time, always. It worked for Einhorn and that's something we can do. If we can find those things, we don't have to do anything. That's also something we can learn. Secondly, before investing, we have to understand the business model. What is the business model based on how it works and what are the most important keys and then see how that fits our portfolio. And the third thing to understand is we have to avoid time bombs but don't short them. So let's start. So David Einhorn, a hedge fund manager that delivered 16% per year up to 2016 and since then preferred miserably is short Tesla. And he has explained how Tesla doesn't make any annual profits, how robotexes are what Tesla is promising or the analysts are bullish on Tesla, are expecting, must attack back how he lost money over the last years, how he doesn't have other things to do than to short Tesla and write false accusations. Einhorn again replied, discussed how the accounting is not OK. Tesla is losing money and blah, blah, blah, all that story you probably know. However, what can we learn from it? Let's start on long-term investing. This is actually what I focus on, Greenlight's letter. On August 31, we saw the last of our Apple stock at 228 per share. The first purchase was at 36 per share. For a number of years, it was the largest position in the partnership. They made a billion and compounded the 26% annually over the last, what, 10 years. And this is the message. He bought the stock, he invested a lot of money in it. It compounded what, 26%, it is a seven-beggar. And the thing is that he is a long, short-value investor. So his portfolio is 160%, 106% long, 76% short. He's a lot of position constantly doing something, constantly trying to be smarter than other guys. What is our investment advantage as independent investors? We don't have to be constantly smarter. We just have to be smarter a few times here and there. Imagine if he would have said in 2010, okay, I'm putting my money in Apple and I'm forgetting about everything else. All the investors would pull out the money out of his hedge fund because they would say, oh, I can put my money without you into Apple, without paying you 220 fees. So that's a disadvantage he has that we as investors have. So investing long term, finding those good businesses that will do well, that have the opportunity to do well because it was, Apple was very cheap back then. Now he says we are selling because it's expensive. But if you don't find anything like that, you can simply wait. Sooner or later, you will find those great investments. And that's all you need. You just need a few stocks like Apple over the last 10 years and your portfolio returns will be amazing. So let's dig deeper into their fight. So the second message is we have to understand the business and the perspective. They are attacking Tesla and they are doing it rightly because there are accounting issues. There have been facilities, there have been many promises that were broken. But here we have to understand really the business model when it comes to investing. What is Tesla's business model? Tesla has to reach scale. And when Tesla reaches scale to achieve profitability based on the technology that will come there, then yes, they might create market share, they might turn profitable and they might do really, really well. Before that, they used a lot of capital, they are still using capital. They will probably need more capital in the future. But as long as the story is there, they will continue to grow. And that's something you have to understand. Whenever it comes to businesses, you have to understand, okay, what are they doing and how does that fit my portfolio? Tesla, am I going to invest in that even if I know it's based on promises? There are no yearly earnings. And as we have seen in Ray Dalio's last letter, there is so much money flooding the market that investors are forced to invest in those promises. I don't know, 3 million robotaxis or something like that. And Elon Musk knows that. That's why he's so strong and worthy when it comes to protecting Tesla. Because that is his business model. He might make it, he might not make it. But he is about selling those dreams. And I really hope he makes it. Because electric cars, he has created by himself the electric car revolution or other car makers are now following. So I really hope he makes it. But when investing, you have to understand the risk and reward of the business model. If there is a liquidity squeeze, liquidity crunch, Tesla can go bankrupt very, very quickly. And that's something you have to understand when it comes to investing. What is the risk and reward? And how does that risk and reward fit my portfolio? Einhorn is completely right. Tesla is trying to do whatever they can to keep the story strong, to keep the promises strong. Even their sales are going down, but their receivables are going up. And things like that, like Einhorn discusses. And that's something you have to be very, very careful about. But as I said, let's hope Tesla makes it because I think somehow they are improving the world. And they have improved it because a lot of people think about CO2, less mog electrification, improving technology, so improving lives. And that's what really, really matters. Whether they will do it, whether their businesses will succeed, whether the investors will make money is another story. But the second message is try to understand the business model. And the third message where Einhorn is often wrong is avoid time bombs as a value investor because something might happen, it might not happen, but if there is a high possibility that it might happen, like with Tesla, then value investors don't invest in it. But don't go short. Let me tell you a story about Einhorn. So Einhorn wrote a book, a long short story, when he short lied capital. He started shorting it in 2002 and he was wrong until 2008 because he looked at accounting, he said, okay, this is wrongly accounted, the fair value is not like that, this company will go bankrupt and it actually went bankrupt. But not in 2002, it went bankrupt in 2008. Similarly, he is on Tesla that it's not right, it will go bankrupt if the markets are rational. Well, if the markets would be rational, Tesla would not even be on this level. There is so much money, so much printing that is keeping all those companies alive. And that's also something that Deilio said. And here it comes, when it comes again to investing. If something is irrational, like Tesla, it doesn't matter, it will go your way and it will go your way immediately. If you are just long, if you just buy a stock, like he did by Apple in 2010, Apple fell 40, 50% when Samsung came out with a new phone and then it's recovered. But when you're just long, you just need to be right about direction. When you're short, you need to be right about direction and timing, because being short costs and if you're wrong on your short, as John Maynard Keynes said, the market can remain irrational, much longer than you can remain liquid. And starting with 15 billion is his fund and now having 5 billion, liquidity is a big issue for Einhorn. Allied capital, he shorted it from 2002 to 2008, legal battles and everything. He was right at the end. Did he make any money? No. Similarly for Tesla, he might be right, but he might not make any money because of the timing issue. He might be wrong on the timing and therefore, he's not a value investor, he's a gambler. Value investing is something where you don't accept such risks and that's a huge risk. And what we can do as investors, we can avoid such time bombs. Okay, Tesla, yes, it can go to 900 billion to 3000, 4000 as a stock. Let's hope it goes, but it's not a risk I'm going to take with a large part of my portfolio. So the three messages are very simple. The easiest thing is to find good businesses, be a value investor and when you find something good, buy it. If you don't find anything good, don't buy it. And that's an advantage Warren Buffett has and has had over everybody else. In 1960s and the 1960s, he simply dissolved his partnership because he said, I can't find investments. So here is your money, I'm stopping hedge fund managers, other people can do that. We as independent investors can do that. 1986, letter to shareholders, Warren Buffett said there is nowhere to invest, but he didn't had anybody tell him, he's the owner of Berkshire. Nobody can tell him what to do and what not to do. Now again, he's sitting with 120 million in cash and nobody can tell him what to do because he's independent. Hedge fund managers, fund managers, your bank advisor, nobody's independent and there is constantly somebody bombarding. Be independent is the key message. Secondly, yes, something can go right, something can go good. Understand the business model before you invest. Understand the risk and reward. And thirdly, if you're a value investor, don't bet, don't go short because the risk is unlimited. The upside is limited, the downside is unlimited. Check my stock market research platform where you have my portfolio, all the stocks, research reports and everything that I do that fits the value investing long term perspective. Thank you for watching. Subscribe. And I'll see you in the next video.