Quick example from the corporate world.

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

And I think you already get the sense that the lower the

Why wouldn't I just pour all of my money?

So that's a little bit of a taste of why someone might realistically, in this case, pay a higher Price to Earnings for safety.

A looked expensive.

But when you lower the Price to Earnings you are increasing the Earnings to Price.

Maybe Toyota has an incentive there, but even Toyota is making more money off the luxury cars, and less money off the cheaper cars.

We don't trust America anymore.

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

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

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.

Anyway, I want to leave you there.

Our interests clash with theirs.

Let's say that we don't know that they're truly equal.

Money lenders are enjoying a profitable period.

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

Available services

The call came from a highway rest stop, southbound side. Yeah.

Minus 500,000.

So if you recognise the Revenue for the service you actually did that month, that 400

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.

Somebody who treats your product like the simple highmargin commodity that it is.

A company is a business organization with sales, a product, or service in exchange for revenue and profit.

Interest rate

As a matter of fact, you did a pretty large catering.

Kill the goose that lays the golden eggs.

So let me switch colors just to ease the monotony.

Like crappy products, like lame services, like uninspiring places to work.

A benefit to both our worlds.

I'll just abbreviate that as Nl.

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.

Poor people are recipients.

Go ahead, eat.

So growth is the other reason why you're willing to pay a higher Price to Earnings ratio.

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

Coupon rate

Market interest rate

And that's my dad found that.

Why would someone ever keep their money in the bank at 2 or a Price to Earnings of 50, when they could have a Price to Earnings of 10 with Widgets Inc.?

No one wants it to go off.

It's just a faster way of saying

I know a little about it because one of my friends is in the nursing program.

So what are they?