The president's action on steel probably had something to do with the timing of the decline, but I don't think it was the factor which determined the amount of the decline. For some time stocks have been rising at rather rapid rates, corporate earnings have not been rising, dividends have not been increasing, and it's not to be unexpected that perhaps a correction of some of those unusual factors on the upside might occur on the downside. Some observers from time to time say that the stock market is a forecaster of events to come. Can you predict what you care to take a look at what you think this might be forecasting? The decline? The stock market has been a good forecaster from time to time in the past. It also has been a rather poor forecaster occasionally. For example, the last four or five years of stock market has been booming along and presumably forecasting better business, which is really not materialized. Corporate profits are not any better than they were five years ago, but stock prices are 50% higher thereabouts. So maybe the stock market is really correcting a previous incorrect forecast this time rather than making a new correct one. Well, that's you, Mr. Buffett. Can you give us your opinion of just exactly what happened? What caused it? Well, there was undoubtedly some force selling the week when the stock market hit the news. The previous week prices declined about 6% for the week on average. And there was some stock that was forced upon the market, both by margin calls from brokers and some that was forced out by improperly secured bank loans. And this in turn set up a self-generating mechanism on the downside for a while, which we may have seen the last of and which we may not have seen the last of. So I really hope you enjoyed the video. It's amazing to see how sharp Buffett was what, 60 years ago. But the most important thing that I want to discuss here is that nothing has changed. Buffett is still the same guy now than as he was back then. Just his language is more adapted to the masses. He's not so sophisticated anymore. But what he was saying then holds now. Let's just go through the topics that I find very important to understand for our well-being and financial success. The key point to grasp is that as Buffett said, if stocks go up for no reason, those might also go down for no reason, especially if corporate earnings do not improve. And let's take a look at SAP 500 earnings since 2006. They haven't gone anywhere, but the stock prices exploded. Further on the question, if the stock market can forecast things, he says it can be good, it can be bad, as a forecaster or the stock market. So again, this is pure Buffett. I don't care about the market. I care about my businesses. Simple as that. He has been doing that for the last 60 years. And we now see the success of his mentality back then. It's not about the stock market, it's about the businesses. Then something very important, he mentioned how the stock market declined back then 6% in one week. And that's something we have just have been seeing some glimpses in the past few months, but there is plenty more from where that comes from. He says how there were broker-margined calls, other debt calls that triggered a sell-off in the market. And that's something normal. The same happened in 2002, 2009, 2008, 2009, and will probably happen in the next recession. Because as you can see here, margin debt is at the highest historical level. And that usually happens when stocks are expensive and high, and not the opposite when stocks are cheap, when everybody should be high on margins. And Buffett closes with something very important. Which we may have seen the last of, and which we may not have seen the last of. So that has been his mantra for his whole life. Don't ask me what will happen in the stock market in the next week, month, year, two years, because he doesn't know it, and he doesn't care about it. What he cares is his prices, his purchase prices, his stock, his businesses, that give him the cash to grow his capital, his portfolio. And that was his mantra for his whole life, and very, very successful. And if you want to be successful, I think we should just follow what he has been doing, buying great businesses, risking a little bit, paying a little bit more for a great business, long term business, but really understanding the businesses we buy. And that's exactly what I do. Buffett is from the US, I'm from an emerging market, so I'm more focused on emerging markets, because I know them better, as Buffett knows the US better. I think I'm in an advantage now, because I can really find bargains at emerging markets. So subscribe to this channel, as the next step for my research and my sector and my research platform are in detail analysis of Brazil and Argentina and many Brazilian and Argentinian stocks that might be cheap now, because nobody likes emerging markets now, but life there goes on. Thank you for watching, I'll see you in the next video.