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.

They set up their own bazaars and medical clinics.

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.

I don't want to draw this box.

And rich, eh?

Principal industry farming.

I'll do that in yellow.

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.

Canada abounds in timber.

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 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.

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.

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.

But let's say its assets are worth 1 million.

All of the assets needed to start the firm, the pizzeria.

Or they just have a super flush bank account.

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

But let's just kind of think about a generic balance sheet for a bank.

So 225,000

I guess you could say non cash assets, right?

Are you a man of means?

The leisure industry is sinking more money into new resorts.

The industry is heavily dependent on government funding.