So under that basis, we put it out and said,

And we'll introduce debt later, because that's another variable that a lot of people don't think about when they

He did this because he understands data as well as books.

It should start to make a little bit of intuitive sense

My liabilities would be 145,000.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

So 26 billion of assets minus 23 billion of liabilities means that we have 3 billion of equity of shareholders' equity.

And we have 23 billion in liabilities.

Yeah. shouldn't we have a say in how to build our investment portfolio?

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

So this is just another visual representation that

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

And this is called the equity, or the owners' equity.

These are my assets, and these are my liabilities.

I'll draw it a little bit bigger.

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

CA

And here is an example of one of her analyses

let me just draw you a spectrum here.

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

So he owns it outright so all of the 100,000 of asset value is actually his equity.

Japan is poor in natural resources.

And on the cash flow statement you express that saying

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

You know, the alternative, communism, has not worked.

liabilities plus equity is equal to assets.

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

How much equity do they have?

Let draw it so I don't get ahead of myself.

What do you have against capitalism?

If you go over the education spending and the health care spending particularly these long term trends you don't have that type of involvement on a number that's more important in terms of equity, in terms of learning.

liabilities plus equity.

This is the building.

People can do a whole PhD thesis on this type of thing.

And on the left hand side, I have no liabilities.

So that's a liability.

liabilities.

That's my equity.

They could say, well when I go to my financial planner, they said, oh, it's so inefficient for you to have all of that equity sitting in your house.

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

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

John is looking for a book on Japanese history.

Let me do equity in a different color.

It's all his equity.