Amortization is intangible.

Amortization is the exact same thing, but it deals with intangible assets.

Intangible, doctor.

What's an intangible?

Maybe they're intangible assets.

This is the principal amortization.

But that's all amortization is.

amortization. Amortization is to spread out a non tangible cost over a period of time.

So it would be patent amortization.

And all of this is very intangible.

They are very intangible at this point.

You'll often hear the words depreciation and amortization used together.

And there's all sorts of intangible assets that you might amortize.

So essentially, a 30 year fixed rate loan has a 30 year principal amortization.

We'll talk later about amortization schedules and how can you pay down the debt.

But then we use that airliner ten thousand times during it's amortization life, at least.

If you've watched the video on depreciation and amortization, this might even include the depreciation on some of the physical assets they've bought, or maybe the amortization on the rights to the name Super Pizzeria.

Amortization is the exact same thing as depreciation, but it applies to things that aren't equipment.

Rory Sutherland I'm not sure this isn't the most perfect example of intangible value creation.

They have no money down, 1 million loan, subprime, negative amortization, they had no credit rating, etc, etc.

So an intangible asset, we can't do any of that stuff to, but it's the exact same idea.

And it is, for me, a language which expressed the intangible, and gives voice to people and stories without.

Now this is the most perfect case of creating intangible, added value, without changing the product in the slightest.

Or you can live in a world where actually intangible value constitutes a greater part of overall value, that actually intangible value, in many ways is a very, very fine substitute for using up labor or limited resources in the creation of things.

So patent amortization would be 1,000 in this year, 1,000 in this year, 1,000 in this year, and 1,000 in this year.

But, actually, it's suddenly come to me after years working in the business, that what we create in advertising, which is intangible value you might call it perceived value, you might call it badge value, subjective value, intangible value of some kind gets rather a bad rap.

And of course you have all of the assets of the firm, which essentially, it's a website, and offices, and the knowledge, some of it intangible.

Another fantastic case of creating intangible value to replace actual or material value, which remember, is what, after all, the environmental movement needs to be about

And evolution, although it was established well over 100 years ago by Charles Darwin and a vast number of other people, evolution still is a little bit intangible.

What's also interesting, if you look at products that have a high component of what you might call messaging value, a high component of intangible value, versus their intrinsic value

So I'd like to take the idea that Rory Sutherland talked about, this notion that intangible things are worth perhaps more than physical things, and take that a little bit further and say that

The last few years have all seen the rise of innovations in how we measure and display aspects of the world that can be too big, or too intangible, or too slippery to grasp easily.

love, sex and other things, and learn to place a material value on what you've previously discounted for being merely intangible, a thing not seen, you realize you're much, much wealthier than you ever imagined.

So principal amortization just means, well, if I just keep paying this mortgage, after how long is the entire principal amount not just interest, how long is the entire principal amount going to be paid off in?

So now if I were to draw the assets of this corporation, at least at the time of that guy's investment, where the very intangible asset, we called it the idea, now has a value, 5 million.

And we'll talk later about depreciation and amortization and how we might change what these values are, but a very simple way is, if you went out and bought 10 million worth of stuff, you'd write on your books, I have a 10 million asset.

leading to a different continuous amortization of x, y, and theta, but because in A we tend to expand cells along the shortest path before we look at the longer paths, we now just cut this off and never consider the state over here again.

I know that it's very intangible, touching people's hearts and souls, but the only way that I know how to do it, the only way that I know how to reach out to somebody's heart and soul all across the world, is by showing them a film.

And it's legitimate monopoly of means of violence, administrative control, management of public finances, investment in human capital, provision of citizenship rights, provision of infrastructure, management of the tangible and intangible assets of the state through regulation, creation of the market, international agreements, including public borrowing, and then, most importantly, rule of law.

Is it just hardware or software or books or are there really some manufacturing goods, some commodities, are you going to have intangible products that are part, copyrights and licenses that are part of your value proposition or are your going to have any financial products that is guarantees or insurance policies or maintenance contract or you're going to add some digital features to it as well.