These are the only people who really have, arguably the sophistication and the time and the monetary incentive to really look and scrutinize what management is doing.

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

Company A made 1 per share. 1 of EPS.

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

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

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.

Yep, that's right.

And the other reason is, this was just 2008 earnings.

Our interests clash with theirs.

Minus 500,000.

He derived great benefit from the book.

They've been good performers in profits and dividends.

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.

Kill the goose that lays the golden eggs.

So this is trailing 12 months earnings.

A benefit to both our worlds.

I'll just abbreviate that as Nl.

Go ahead, eat.

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

Read the kind of books that are useful to you.

Read the kind of books that teach you something.

Read books that are worthwhile.

And that's my dad found that.

So what they do is they just take your earnings number and you divide by the number of shares.

In return on equity, the numerator is the net income that we got, so it's 350,000.

And that's what these brands did.

FDlC insured.

The rewards would be... enormous.

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

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

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

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.

This is 350,000 of net income.

Why make this thing?

All the profits go toward Phillip's hospital bills.

The taxes will be 153,000.

I'm not a charity commissioner.

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

It's also important to think about what the benefit is.

So now look at the different lens.

Peter The greatest benefit to all.

Now we can do another notion, and that's return on equity.

Science comes first, but business comes a close fucking second.

So then you're having, you have your net income, your net income during the period.