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.

Amortization is the exact same thing, but it deals with intangible assets.

So it would be patent amortization.

No industry. No capital. Money is worthless.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

Without billions of dollars from the private sector

The vast majority have practically nothing.

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

It should start to make a little bit of intuitive sense

Because I haven't earned mine yet.

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

liabilities plus equity.

And you hear the words scarce resources a lot when people talk about economics.

I guess you can't quantify charisma and good looks.

We don't have access to cash, bodies...

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

So this is just another visual representation that

less capital intensive that there's less money that's required

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

Now in order to do this and this brings this group we have to rethink the notion of capital.

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

And we allow entrepreneurs to share a percentage of their revenues.

Capitalist country.

His form... perfect.

Unconstructed dream space.

I have factory tools worth 500,000, and then that cash will go away.

That's instant disqualification.

Don't spend it. Invest.

I'll do that in yellow.

That's simply not true.

Let's figure it out. It's equity.

One, what shares are share of

You love your heroes.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

And then the equity is, essentially we would look at this formula.

Look, an authentic voodoo doll.

No major investor will consider us.

liabilities.

I spent 60,000 on Capital Expenditure sometimes it's property plant and equipment .

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

like an equation, but it's assets is equal to liabilities plus equity.

(Applause)

Good health is his capital.