That assets, A for assets, is equal to

But we'll do a whole playlist on that.

It doesn't somehow represent the entire company.

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

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

What was Mr Zuckerberg's ownership share diluted down to?

liabilities plus equity.

These are some of the vehicles that we've been working on.

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.

Completely equivalent companies.

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

Capitalist country.

I'll do that in yellow.

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.

And so it's the pursuit of better things, easily shared.

liabilities.

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.

Good health is his capital.

So the only liability is this 5,000.

It's good for you.

So you've got this massive mismatch everyone knows that if they share they're going to get HlV, but they're all sharing anyway.

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

I'll draw it a little bit bigger.

For example, I want to use Zipcar.

Sometimes you just want to share with your friends.

In value proposition, what was the product cost?

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

And the truth is, for years I was a little depressed, because Americans obviously did not value it, because the Mac had three percent market share,

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

We need flat land, we need 300 days of sunlight, and we need to be near a gas pipe.

You can pass it around.

So let me do that in a vibrant color.

That's 11,000.

Let me do equity in a different color.