Capital intensive industries are not necessarily knowledge intensive industries.

As economy develops, labor intensive industries give way to capital intensive industries.

So its assets.

But when I talk about the asset, I'm talking about only the operating assets.

Howard Winklevoss founded a firm whose assets are in the hundreds of millions.

That assets, A for assets, is equal to

In this case, an EBlT might be a little bit more informative.

I don't want to draw this box.

And rich, eh?

Education six, seven, eight percent of the economy and growing.

Forestry is popular, but there's a lot of waste.

Principal industry farming.

Malibu Equity and Investments.

I'll do that in yellow.

The kids make up the names of the countries some are rich some are poor.

Because in the last video I talked a little bit about return on asset, where we just took the operating profit, and we divide that by the assets.

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.

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

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.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

And this tells you something very important.

And there are a lot of similarities between the Internet and the electric industry.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

It's derived from the original asset.

liabilities plus equity.

Starting with newspapers, what we saw was high cost as an initial requirement for making information, knowledge and culture, which led to a stark bifurcation between producers who had to be able to raise financial capital, just like any other industrial organization and passive consumers that could choose from a certain set of things that this industrial model could produce.

All of the assets needed to start the firm, the pizzeria.

Or they just have a super flush bank account.

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

But let's just kind of think about a generic balance sheet for a bank.

So 225,000

I guess you could say non cash assets, right?

Are you a man of means?

Remember liabilities plus equities are equal to assets.

And what happens in bankruptcy?

And if you look at the species level, you saw about fish.

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.

which I find is somewhat ironic.