Capital intensive industries are not necessarily knowledge intensive industries.

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

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

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

So its assets.

That assets, A for assets, is equal to

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.

Malibu Equity and Investments.

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

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

So if I just had a personal balance sheet,

I don't want to draw this box.

And rich, eh?

Principal industry farming.

I'll do that in yellow.

Starting with newspapers, what we saw was high cost as an initial requirement for making information, knowledge and culture, which led to a stark bifurcation between producers who had to be able to raise financial capital, just like any other industrial organization and passive consumers that could choose from a certain set of things that this industrial model could produce.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

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

He was broken by the failure of his business.

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.

The new venture was financed by a group of entrepreneurs.

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.

The company bought shares in the venture.

We need a large amount of money for this project.

The government should invest more money in industry.

Let's say out of this 10 million of assets, let's say that 9 million are operating assets.

As manufacturing capacity expanded for military industrial use

nothing but a communist cell.

He works in the automobile industry.

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.

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

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

Remember liabilities plus equities are equal to assets.

CA

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

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

I know this gets a little confusing, but it all ends up being valuing the assets as you emerge from bankruptcy.