That assets, A for assets, is equal to

It should start to make a little bit of intuitive sense

liabilities plus equity.

I'll do that in yellow.

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

So this is just another visual representation that

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

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

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

Remember liabilities plus equities are equal to assets.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

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

So its assets.

Malibu Equity and Investments.

liabilities.

These are my assets, and these are my liabilities.

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 I'm going to give you a little equation, actually, just to take a little bit of a tangent.

My liabilities would be 145,000.

Malibu Equity and Investments. Roger Van Zant.

Right?

Mmhm. It's a real estate investment.

These are their assets, just to get all the labelling right.

that assets are equal to liability plus equity.

What's my equity?

I don't want to draw this box.

And rich, eh?

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

If you take an MBA, they'll write it down, and it looks

And we have 23 billion in liabilities.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

Communism, capitalism...

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.

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

And what I wrote here is, it has 4 billion of liabilities.

But we'll do a whole playlist on that.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

So the total assets were 5 billion in assets.

You'd have to give up 93 of your net worth.

And this is another important thing to think about.