Minus 500,000.

Our interests clash with theirs.

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

They buy more of your service and they tell more of their friends, which leads to more profit.

But here you see it means very, very different things.

Why isn't it on every poster across the third world?

And we had no expenses in that month.

This is really important to pay attention to, because so many people say, oh, a company made this much.

I'll just abbreviate that as Nl.

Before Interest and Taxes.

Go ahead, eat.

And when people talk about earnings of a company, this is what they're talking about.

Even if it benefited the publishers, it was a creative right and author's right.

There is no doubt about what they have done.

So EBlT, I kind of view that it goes backwards.

So now look at the different lens.

War does have its benefits...

No one wants it to go off.

This is a pretty profitable business, more profitable than most.

With trade, there's mutual interdependency and mutual gain between parties.

Kill the goose that lays the golden eggs.

The taxes will be 153,000.

I'm not a charity commissioner.

A benefit to both our worlds.

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

There are also real business benefits.

Look at the people in these photos I've been showing you.

And you'll hear these numbers, gross and operating profit and net profit and pretax profit, and it's very hard to understand that these are actually very, very different things, because they all have the word profit, and what does gross and operating and all that mean?

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

We don't make money at these damn shows.

People tend to place a much higher value on losses than on gains.

So that's a nice thing to keep in the back of your mind, this return on asset concept, and it's very closely tied to operating profits and the actual assets of a firm.

And that's what these brands did.

FDlC insured.

And that's my dad found that.

The rewards would be... enormous.

They allotted the profits fairly.

Yep, that's right.

And let's say, assume if I inherited this million dollars, I didn't finance it.

They obtained a yield of 8 percent on their investment.

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

The reason this is happening boils down, in my mind, to one basic problem, which is our inability to perceive the difference between public benefits and private profits.

There is no profit in worrying.