The company's capital expenditure program is set to be 10 billion yen for this year.

Japanese automakers are investing heavily in new plant and equipment.

So there's no net investment.

Corporate profits are quite high in fact, if you include bank profits, they're higher than they've ever been.

Our advice is that the company invest in new equipment.

We have motion sensors, alarm systems, armed guards.

The amount of money you get.

So those are the two side effects of high utilization.

But his return on asset has gone down to 20. and, because he's at that utilization, his return on asset has gone down to 20 .

High utilization will allow you to raise prices and when you raise price you'll get a better return on your asset, and then the other side effect is, when you have that high return on asset, you'll also have more investment going on to build more capacity.

Actually, I'll throw another thing in here that's a little unrelated to inflation, but high utilization makes prices go up and it also makes people want to add more capacity, right?

So I think we all agree that if I were to build a factory that this is let's say I'll do everything in green as investment.

..goods and equipment I needed to survive.

Investment

Now, who are they accountable to?

So it essentially spreads out the cost of that 500,000 a year.

Malibu Equity and Investments.

Well their intention was to take these home equity loans and put that money to work, invest it in some way.

He valued what we already had at 5 million dollars.

They're valuing these assets at 1 million.

Investing in professional development is not a cost.

As investors flee

Investing.

I find a lot of people are not very good at this.

Malibu Equity and Investments. Roger Van Zant.

And this is the important thing.

This is the total actual value.

And I'll show you why that matters in a second.

Big investors.

Investment in what?

And we've dedicated we've just raised a new fund, we dedicated 100 million dollars to these kinds of investments.

We are now faced with these questions to answer.

Prepositioned equipment?

Did you know that 40 percent of the wealth created in Africa is not invested here in Africa?

Mechanical systems.

Yeah, it sounds very tempting, but Berenson needs me to update these financial models for the meeting with the foreign investors.

(Laughter) Here's some advice from one of the largest investors in the United States.

But he said you know Nempo...

Peter Thiel just made an angel investment of half a million dollars.

What happens in a closed end fund is that all of the investors are essentially

We said before any of this stuff on the top existed, the pre money valuation of just our idea was 5 million.

So what they do is, instead of just expensing the cost of the machine, when the machine is bought on the balance sheet at the beginning of 2007, they say, we now have an asset called a machine.

Let me put that.

Just Manic Enough.

Consider it a capital investment.