I still have no liabilities

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

So this is Company let me do a new color let's say we're dealing with Company x right here.

And I'm going to manage this money right over here, and I'm just going to take a percentage of the total assets under management

So its assets.

In this example that I did in the previous video, it was the pre tax return on asset.

If you can't pay the debt, the bank comes and takes your home.

So their equity was actually 20,000 plus the 150,000 that they got from just the increasing asset value if they didn't enter into this transaction.

That assets, A for assets, is equal to

So anyway, what happens in Chapter 11?

Malibu Equity and Investments.

Notice the equity doesn't change.

In a world without leverage so if I didn't have all this

Because essentially, or you can view it this way, if you subtract liabilities from both sides, assets minus

Andrew,you'll analyze the SEC filings.

So 225,000

I don't want to draw this box.

And rich, eh?

Deposits equal liabilities from a bank's point of view.

So what is left over for me?

We said, and we learned it in the first video, and we

And then you had the equity, which is essentially the total assets minus the liability.

I'll do that in yellow.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

You struck a deal?

I want to make a deal.

So let's say when we liquidate it so we go into bankruptcy and essentially all of the assets are taken into possession by the bankruptcy court they're going to sell these assets.

These are my assets, and these are my liabilities.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

liabilities plus equity.

And also you can deduct, actually, the property tax.

And you get a 6 billion market cap.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

So this is the assets.

It's the same plot.

And what I wrote here is, it has 4 billion of liabilities.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

So the total assets were 5 billion in assets.

You'd have to give up 93 of your net worth.

If you are investing in tar sands or shale oil, then you have a portfolio that is crammed with sub prime carbon assets.