 Good day, fellow investors. This is an extremely important video and it will discuss why I'm not investing in Tesla, NIO, Aurora Cannabis, Bitcoin, and similar investments. It's crucial to understand the difference between value investing, long-term value investing, and speculation on the other side. And therefore, even if Tesla is, yes, I know, three times, up three times over the last six months, I didn't invest in it. I missed the huge bull run up. I got a lot of comments how I am an idiot, but I'm fine with that. I'm fine with being a rich idiot, getting richer, richer, richer over time, boring, rich idiot. That's me, and in this video, I really want to explain the key concepts when it comes to long-term wealth building and chasing investment returns, chasing speculative investment returns. You'll see the difference between the one and the other, and if you pick, you will see what you pick, but over time, all the investors sooner or later come to the long-term investing path because it's the only one that works. I'll explain the long-term investing cycle, what's speculation, what's investing, compounding the key, what does losing money mean, why Buffett always says don't lose money, and then what's risk reward when it comes to investing. To put things into context, my name is Sven Kerlin. I'm an independent investor, stock market researcher. I manage my own money, my own portfolio, and I look for companies for businesses that give me long-term sustainable growing returns over forever, in definite time. That's what I do. That is what Buffett has been doing over time, and that's also, I'm sure, my stock market research platform subscribers can tell you about it in the comments below. That's what we are looking for. We are looking for those few businesses that will do well, create extreme returns with low risk because that's what investing is all about. Let's put that into a life cycle perspective. I'm now 46, going into 47 this year, and I've been investing since 2002, and if I'm 46, I'll probably live to 100, let's say, yesterday I was looking at Charlie Munger's speech for the Daily Journal. He's in his 90s, still kicking ass, and I'll make a quick summary about that, so please subscribe and click that notification bell for long-term mindset investing on this channel. So I have another 64 years of investing ahead, so when you put 80 years of investing, 80 years for the average person now, given the health, given where we are going, and or even 60, when you put 50, 40, 60 years of investing in your life cycle, then you see, okay, I have to find a way that I invest that's sustainable over the very long-term that will keep compounding my returns, and I have to do that in a way that it maximizes my investment over the very, very long-term. You have to invest in a way that you maximize your returns over the very, very long-term. Maximizing returns means compounding, allowing for compounding, not losing money, managing risk and reward. When it comes to all of that, yes, Tesla is up 300%, but what's the risk and reward with Tesla? And just to note, I really hope Tesla does it and becomes a big player in the industry, shifts from fossil fuels to electrical. So I'm a Tesla bull for the business, for the cars, for everything. I like this exuberance when doing business. However, when it comes to investing, okay, what's the risk and reward? We have seen the stock going from 400 to below 200 and then exploding. That's the risk, reward, and thankfully there is so much money in the system so Tesla can recapitalize and get more money, more money to do what it does, not that much from the business yet, perhaps in the future, but that's not something sustainable. And those that made 300% over the last six months, great, congratulations to you, but is what you did sustainable over the long-term, is again something you have to ask yourself. Also, will you put significant part of your wealth into Tesla? I will never put 10, 20, 40% of my wealth in Tesla because the risk of losing it all is significant and once when you lose it, there is no more money there to invest in other things and that's the risk reward. And when you put that into 100 years, there will be many companies like Tesla. One out of 10 will make it or one out of 50, but 49 will probably go bust. The first rule on investment is don't lose. And the second rule on investment is don't forget the first rule and that's all the rules there are. I mean, if you buy things for far below what they're worth and you buy a group of them, you basically don't lose money. And that's it, don't lose money, don't lose money, don't lose money because losing money doesn't allow you to compound and compounding over time is what maximizes your returns over the long-term. Just let me give you an example here. This is 100,000 compounded over, okay, 50 years with two losses of 50% after 10 and 20 years. The difference is staggering what's that 80% difference because no losses, the two losses in year 10 and year 20 really destroy the compounding effect. So if you invest in risky businesses, you have to be careful that the compounding effect is allowed. Similarly, if there are two losses in 50 years, in year 10 and year 20, you need to reach a 14% yearly return to cover for two losses in just two years of 50%. 4% is a big difference, four versus 10% is a big difference when it comes to investing. And then compounding if you invest in businesses that grow, that's why I'm not investing in Bitcoin or physical gold because there is no yield, there is no growth, there is not a real business that we can compound into infinity. Again, same as Tesla, if Bitcoin goes to 100,000, great. All of you that have it great, you'll make a lot of money and I'm always bullish on that, I'm always positive on that because the more the merrier, the more things are positive, it's better for all of us. So I'm not against it, but I'm just telling you why I'm not investing and then if it doesn't happen, if this loses, again, goes down to 3000, that's a big loss that doesn't allow for my compounding. So I'm focused on that compounding. Yes, I know it's boring, I know it's long-term when you're talking 50 years but that's why I have just 57,000 subscribers and each one of them is extremely valuable. And if you like this, again, subscribe, if not, there are plenty of other channels here on YouTube that will talk about Bitcoin, Weedstocks, Tesla and whatever is the hot stock at the moment. If you don't want hot stocks, if you want long-term compounding, then you are in the right place. There was so much exuberance about cannabis stocks, well, this is the result. Okay, those that invested when nobody was talking about 2015 made money but most of those that invested during the hot times 2019, 18, well, this chart tells it all. And now I'm really not smart enough to do this. I'm really not smart enough to find stocks that will triple quadruple every year and then do that sustainably over the next 10, 20 years. I am smart to do this. I'm smart to compound at 10, 15, 20% what I've been doing since 2002. And I can find those good businesses with low risk that give me a good reward over time because that's where nobody's looking at. Nobody's looking at five, 10 years down the road where you can find businesses that give you 10, 15, 20% with relative low risk and everybody's looking or, okay, ARK investments, Tesla's going to go to 10,000, 20,000, whatever, that's hot, that's something you can sell immediately. If I tell you something, oh, something's going to happen in 2025, 2027 and then we slowly go there, compound 10%, that's something very difficult to sell because it's so boring and YouTube and those things are about excitement and people are greedy and that's normal human nature. But I think it's extremely important that I keep telling that to the world and if just a few of you hear that, then I did a good job. Just another example, if you quadruple your money every year, then in five years you have a thousand times more money. If you increase your money just 300%, so what Tesla did over the last six months? If you do that over 16 years and you start with 20,000, you end up with $85 trillion, $86 trillion, which is close to the current market's capitalization. So that's why it's not sustainable. You end up owning the whole world in 16 years. You own everything. All the companies in China, all the companies everywhere, you own everything, Jeff Bezos sells you Amazon, you own everything if you can compound at that rate and I'm simply not smart enough for that. So investing is about risk and reward. You try to limit your risk, not to lose money. That's what value investing is all about. You invest in cash flows, business growth, dividends, earnings, great business models that can sustain the ups and downs of the market. We have been living in 10 years of a bullish, great market, ECB-fed printing money, low interest rates, so huge tailwinds, but when you look at investing over your cycle of 80 years, 60 years, 80 years ago, the second world war was starting. So that's something you have to keep in mind. The world will change, but if you have good, great investing principles, then you will be set for life and that's the key. If I look at what is selling, if somebody is selling risky stocks, could make you filthy rich, but yes, but what's the risk and reward of that? So to conclude, if you want me to search and that's what I do when I'm not doing videos, if you want me to search for those great businesses and even if you find a few one a year, you put it in your portfolio. You will get dividends, you will get growth, you will get earnings for the rest of your life for infinite time with low risk, high reward. That's investing, that's compounding, that's value investing. So if you wanna check what I do for less than a dollar a day, you can check my stock market research platform. If you like this mindset, investing mindset, please subscribe to the free stock market investing course that I offer. It is free, it will forever be free or because I want to help those stock market beginners. Subscribe also to the YouTube channel, thanks for watching, looking forward to your comments and I'll see you in the next video.