 Good day, fellow investors. We continue with our summary on Ben Graham's book, The Intelligent Investor, the key book for investing. And today we're going to talk about very delicate subject, especially for me, investors and their advisors. So how much investing advice should you have and should you have investment advice? The topics are seeking investment advice, differentiate between stock market forecasts and business forecasts or analysis, advice from brokerage houses, investment bankers and then we'll conclude with always Graham's main message. So the first topic is seeking investment advice. Now there are two kinds of investment advice you can seek. Graham says that first a person that doesn't know a lot about investing should seek investment advice not to do stupid things. So if you have, if you want an average return, good bonds, stock market index, then if you get advice that tells you okay do this and don't do stupid things let's say that 25%, 75% bond stock allocation that Graham promotes and if you are a defensive investor if you don't go into doing stupid things then you will do well over time. But you will do average, you will have a good return probably now around 3-4% over the long term which is very good for a lot of people. So those people should need, should find trusted advisors that will keep things stable over time. The second thing and here is where things really can go wrong and that's looking for investment advice giving money to somebody else or trusting somebody else's opinion for better than average returns. And here I come on a delicate spot because I am having an research firm that looks for better than average investment returns. So Graham would say don't do that especially if you're a defensive investor. So Graham would say take specialized investment advice only if you understand and it saves you time in doing research. So you have to understand what are you doing, you cannot let others make decisions, you can use my research but you have to be the one that makes the decision. So you can use my research, my experience, my opinion but you have to have enough knowledge to understand what's going on and what is the risk reward. If you are an investor, a defensive investor that okay here is offered 4% and then I come and say okay we'll do 10-12% and then you blindly follow what I do without understanding that's something that Graham is against. So if you are an enterprising investor and looking for specialized research advice then you should have your knowledge and you should have a few advisors, research advisors like that save you time and that allow you to make better investment decisions. Then you see your financial goals, your risk reward appetite, what can you do, what you can't do and if it's proper research then you have the pros and the cons, the risk and the reward explained well and you can make your decision according to that and have portfolio exposures. So Graham is really against chasing advices that promise good returns because that never happens but saving on research, getting as much information as possible to make your investment decisions, that's a different story. I think here I come into place, I really did well in my past so I had great investment returns. I will do my best to reach those investment returns in the future and I try to be as conservative as possible with my model portfolio and what I do now in order to limit the risk and reach a good return of 10-12% over the very long term. I don't expect that to be linear, I expect to be a lot in cash now and take advantage of the opportunities when the low risk 10-12% comes to me. I'm not going to chase and do crazy things because I have a lot of responsibility in showing people what can happen and some of you are going to follow what I do. So be sure to learn as much as you can there, that's Graham's message, in order to understand what those research, what that research really means. Then you can always, each life is different and you cannot take, just follow somebody because it will go up and down, crash might come, crisis here, crisis there and then you're in trouble if you don't understand what you're doing. To understand what you're doing differentiate between stock market forecasts and business forecasts. In the market there is so much demand about what will happen, my top videos will always be those with thumbnail stock market crash, the stock market crash, if I make a thumbnail stock market crash in 2018 the highest views because people want to hear that there will be a crash and they want to be told okay what to do, sell now straight by sell recommendation. That's what Wall Street wants, that's what the demand is from investors and that is what Wall Street delivers. However Graham says and I agree nobody knows what will happen tomorrow in the next six months one year. Even Buffett says always that he doesn't know that we must understand that the only way to do well is to analyze businesses, look at the business, earnings potential, risk reward in the development on the earnings and over the long term stock market returns are perfectly correlated with business returns. So Graham says that really don't listen to forecasters but look at business researchers that are trying to understand the business, the environment the business operates and trying to gain value from there. So that's very important to differentiate between stock market forecasts that are 99% of the content and business analysis. So if you want to do good over the long term business analysis investing businesses is where your focus should be. In the same line advice from brokerage houses most stock exchange houses still adhere to the old-time slogans that they are in business to make commissions and give the customer what they want and there is a lot of such business so be careful and I made the video about Aberdeen asset management telling people how stocks will probably go up because the economies are doing well. So be careful about those who sell you something just to get fees. So for Graham Graham says find value-minded analysts and not quotation-minded analysts. Those who focus on the value on the book value and not those who focus on the stock price as always that's Graham. On investment bankers his take is simple they are needed to create a stock market but when their customers are greedy they also offer what the customer demands. Crazy IPOs 1999 2006 CDOs whatever the customer wants they will offer because that's their job. However that their job is also good to create IPOs do analysis and share investment research so 50-50 there. The main message I think from the book that we are summarizing is that you have to first take responsibility for your financial life and then understand the risk reward. If you are a defensive investor you don't have much time bond stocks depending on valuation and yields rebalance accordingly and you will do good over time. The problem is when somebody that does not have the time or the nor the knowledge wants higher than average investment returns then people start do start doing crazy things. Being 100% invested in stocks at this moment in time is a crazy thing for example. So when that starts to come then problems rise and people are greedy and they chase returns and that's a risk because they don't understand the defensive risk reward or enterprising enough to be an enterprising investor to properly understand value investing risk reward margin of safety what can go wrong what can go right in order to get better than average returns. So focus on businesses because nobody knows whether a stock will go up and down but you can estimate relatively well whether a business will do well over the long term or not. Thank you for watching looking forward to your comments and I'll see you in the next video.