But when I talk about the asset, I'm talking about only the operating assets.

Capital intensive industries are not necessarily knowledge intensive industries.

The kids make up the names of the countries some are rich some are poor.

Because in the last video I talked a little bit about return on asset, where we just took the operating profit, and we divide that by the assets.

Howard Winklevoss founded a firm whose assets are in the hundreds of millions.

So going back to what we were talking about, what is the post money valuation?

In this case, an EBlT might be a little bit more informative.

So if I just had a personal balance sheet,

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

He was broken by the failure of his business.

The leisure industry is sinking more money into new resorts.

Their business came to a standstill for want of money.

As manufacturing capacity expanded for military industrial use

But if you really consider all of the assets, and if you assume that there are some assets there that are non operating.

The company bought shares in the venture.

So its assets.

Sometimes for an hour or two, then we catch a bit of a lecture.

These are my assets, and these are my liabilities.

I didn't want to go there in the first video, and that's why I just said operating profit divided by assets.

As economy develops, labor intensive industries give way to capital intensive industries.

The new venture was financed by a group of entrepreneurs.

It should start to make a little bit of intuitive sense

And so that cash ended up here.

So they really had, let's see, they had an 80,000 loan, a 250,000 asset, so they really had 250,000 minus 80,000, that's 170,000.

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

That assets, A for assets, is equal to

I'll do that in yellow.

let me give you that piece of terminology, it just means net asset value.

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

So this is just another visual representation that

Education six, seven, eight percent of the economy and growing.

So it's completely analogous.

He invested two hundred dollars in a growing business.

Malibu Equity and Investments.

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

Shareholders voted to liquidate the company's assets.

He is a man of wealth.

He's a wealthy man.

We need a large amount of money for this project.

So obviously there's no two companies that are identical in this way, but let's say that they are.

Her business was started with capital of 2000.

Her business was started with capital of 2,000.

Joint guaranty for loans is more than an enterprise, right?

I don't want to draw this box.

And rich, eh?