 Good day, fellow investors. Welcome to the stock market news with a long-term fundamental twist. This week the news was mostly about trade wars, tariffs, Trump's actions, Trump's negotiations and how that might impact the stock market and even the stock market declined a bit over the last week. However, perhaps as you're watching this news, perhaps there would be a trade deal, a positive one, a negative one, who knows, retaliation, nobody knows what will happen. I want to put that into an investing context so that you can know what are the best investment decisions to make in this environment. So, the topics will be and I think we'll start with the most important piece of information that was distributed by the media over the last 10 days and that is Warren Buffett, Charlie Mungers and Bill Gates' interview with Becky Quick for CNBC. And we're going to summarize a little bit that because they really touched on China, on that kind of news and they tell you everything you need to know about investing. So, after that I'm going to show you an incredible picture that will blow your mind and it is related to what Buffett is saying about how to invest and after that we're going to focus on something they mentioned but it is second grade news for the media because it's long-term news but we're going to focus on monetary policy continuing on what we started discussing with Ray Dalio's monetary policy free video that I made last week. So, let's start on the trade wars. Warren Buffett was pretty clear on this so he says it is ridiculous just think of it as the US would have different state laws so that a state can impose a tariff on another state. So, I don't know, Michigan would put a state tariff on cars etc. So, if you put the same perspective on the global trade war you see how ridiculous it is. However, Buffett's message is, okay, think of where will the world be 10, 5, 20 years from now not about what will be the political predominant let's say idea until the next elections. Munger is very clear on trade and he says that it is normal business. It happened with Japan 20 years ago on truck tariffs, car tariffs etc. So, it is something normal something that we have to simply take as granted and then think how we invest in businesses and businesses evolve alongside tariffs and all the businesses Buffett and Munger own simply adjust to that. Also Bill Gates was discussing how there are new rules, new regulations and a business adjusts. And while I was researching businesses I'm currently researching businesses in Asia, I did a dozen of so last week and I found a very good example of showing how a business is flexible and it's a dynamic entity not a fixed entity so that it can be hit by trade wars etc. I found this company I was researching I'm still researching I still have to write the full report but it's called Manwa and it is the largest Chinese sofa producer and 40% of their revenue comes from the US. So, if there are trade tariffs okay this company would be destroyed. However, as soon as Trump got elected a few years ago what did they do? They have a lot of production facilities in China some in Europe for the European market but as soon as there were trade talks trade issues they started to build a new production facility in Vietnam. So, the target market here is the US huge production capacity so they will be able to perhaps export from China to Vietnam and then to the US or simply produce things here or assembly the sofas here and send them to the US without tariffs. And this is a perfect example of how businesses are dynamic entities and how you always have to think that things will change over time for the business in the environment and if that you invest in a good business with good management that's all you need to do especially if you can do it at a fair price and the tariffs all the commotion that has pushed down Chinese stocks might give you great opportunities to buy great businesses in a great environment and as I promised I'll show you now the picture that is simply mind blowing. Just look at this the population of Asia and Oceania in 2018 China okay 1.5 billion but the total population there is 4.5 billion so on top of China you have another what 3.2 billion people 1.3 billion in India Bangladesh 160 million Pakistan 200 million Iran 82 million Turkey 82 million Afghanistan I think it was 40 million something like that a little bit less so Vietnam 96 million Thailand Malaysia Indonesia 266 million people Philippines 90 million South Korea 50 okay Japan 127 so these numbers are mind blowing so that's 4.5 billion people not even including Russia who is with its biggest part in Asia and if you think okay where will this environment be in 20 years then you know okay these tariffs are really really something small when you put them into the big big investing picture so the investing message is if Trump does more crazy things if there is retaliation if there is pain on the stock market go and look for those cheap businesses because that might be the opportunity of your life in this 4.5 billion market environment we have Indonesia growing at 6% Philippines growing at 5% so okay they are going to I don't know buy sofas but then you go bottom up and you look at individual business opportunities that go margin of safety value investing good business yield growth etc smart management and then you make an investment decision what happens with Trump what happens with this with that that's just leave it for the media and invest like Buffett and you will do great and something I want to conclude this news is there at the end of the interview with CNBC they discussed monetary policy and all of them Gates Munger and Buffett gave really clear insights onto what they think about the current state of the monetary policy and interest rates which is something to keep in mind when it comes to investing and Buffett said in his conference call last week investing productive assets and that's something that I'm reiterating here let's see what they said on monetary policies Gates said that he is amazed at how high the valuations are but that's logical as interest rates work like gravity on asset prices however Munger said that he is afraid of the idea that you can just print money and solve all your problems that will eventually fail print too much money and you will end up something like Venezuela and here Munger I like him I love him because he's so direct he tells you how things are so if you listen to Munger you will know how things are and that's why we at least on this channel adore really Munger because that's truth and he doesn't like lies and then on Buffett he said 10 years ago I thought low unemployment 5% deficits growing deficits and bond rates at 3% would be impossible and then he said if I feel something is impossible it's going to change over time so it looks like the promised land money doesn't cost anything you can print lots of it no unemployment and no inflation I still believe you can't have low interest rates high deficits low inflation for a long period of time but so far I am wrong and then he said how stocks are ridiculously cheap if we still have a 3% 20 40 year bond and then comparable and if that keeps going on like that for the next 10 20 years then stocks yes are cheap but as he says he thinks it will change Charlie Munger thinks it will change somewhere down the road so it is a risk we have to keep in mind when investing and you can be protected by what Buffett is doing by simply buying pro productive assets that can increase prices in case of inflation so thank you for watching looking forward to your comments subscribe to this channel if you like this investing style in business investment style orientation when we focus bottom up on businesses we look what's going on in the macro but we try to get to the best info out there so that we can find the best businesses that will survive do great give us great returns no matter what I'll see you in the next video