It's really old, and it's tired.

I have no data yet.

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.

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

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

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

It describes it right over here the change in equity, sometime the change in retained earnings, or just change in equity, that is going to be the 200 in net income that the company got over that time period.

That assets, A for assets, is equal to

So this is just another visual representation that

But we'll do a whole playlist on that.

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

Like its agriculture,

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

One, what shares are share of

This is indeed a mystery, I remarked. What do you imagine that it means?

So that's a very handsome return.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

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

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

Let me do equity in a different color.

It's all his equity.

And we have 23 billion in liabilities.

It should start to make a little bit of intuitive sense

It's good for you.

I'll do that in yellow.

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

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.

liabilities.

liabilities plus equity.

And here is an example of one of her analyses

You can pass it around.

So let me do that in a vibrant color.

That's 11,000.

Well, I have 250,000 left over.

Just have a look at the demographics in the U.S. here.

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.

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

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

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

So you'd have 20 million left.

My liabilities would be 145,000.

So we still have 5 million of debt.