They're not supposed to, but they figure out a way.

So AAA corporate bonds.

What is a discounted cash flow?

They tend to be creative. They tend to be entrepreneurial.

One of the interesting thing about costs is that in the old days costs and revenue, the minute you started your company, your investors said oh, we know how to track all this.

So if there are 1 million shares, each share will get 1 millionth of the cash flow stream that's entitled to this entity.

I don't to put too much stock in these statistical models then this entity will just have that property auctioned off or sold.

We were vastly outnumbered. and if he fails as a Marine Sniper, will be front page news, because you'll be dead.

As you start putting all this into a spread sheet you actually start building the classic income statement balance sheet and cashflow we haven't even had you do yet.

Because if you have a venture that really doesn't exist yet and has no cash flow, they know that you're not going to pay the interest on the debt, so you're not going to even be able to raise debt until you are a more mature company.

But we know in the real world, if you're investing in pets.com and they tell you that they're going to pay these cash flows to you, that's not risk free.

When I had a different discount rate for my one year out cash flows and my two year out cash flows, and it was these exact numbers.

Eventually, the right hand side of the canvas down here needs to be bigger than the left hand side, not necessarily during the first year, but if it's not, then that tells you how much money you need to raise and how much cash you need before you go cash flow positive.