The assets are generating this.

And when people talk about earnings of a company, this is what they're talking about.

And now we're ready to figure out how much money did the operations of this business make?

These are the only people who really have, arguably the sophistication and the time and the monetary incentive to really look and scrutinize what management is doing.

It's good for everybody.

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

They're generating the operating profit, and that's a very important thing to realize in the future when we talk about return on assets.

We have this principal that we don't touch that produces returns, social, economic and ecological.

This is really important to pay attention to, because so many people say, oh, a company made this much.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

They buy more of your service and they tell more of their friends, which leads to more profit.

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

We know how much it takes to build our product.

A company is a business organization with sales, a product, or service in exchange for revenue and profit.

I put my software and IBM together

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

And you'll hear these numbers, gross and operating profit and net profit and pretax profit, and it's very hard to understand that these are actually very, very different things, because they all have the word profit, and what does gross and operating and all that mean?

So, not to confuse things, but if you want to focus on GNP, then you do care about the earnings of American nationals.

It recognizes that the market has its limitation, and so patient capital also works with smart subsidy to extend the benefits of a global economy to include all people.

And let's say, assume if I inherited this million dollars, I didn't finance it.

let's actually talk about this for a second.

But when you lower the Price to Earnings you are increasing the Earnings to Price.

I'll just abbreviate that as Nl.

Kill the goose that lays the golden eggs.

The equal sign is just .

By directing that industry, so that the industry in control of that individual actor in such a manner, as its produce may be of the greatest value, he intends only his own gain.

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

No gains without pains.

You can talk about the Humanities and that sort of thing, but let's talk about selfish things.

Then some of its payment is one year out, and that's going to benefit less.

So, let's see, you have to do 1.85.

Utilities are still rewarded when their customers waste energy.

Minus 500,000.

Simply put, we hate losing what we've got.

Read the kind of books that are useful to you.

Read the kind of books that teach you something.

Read books that are worthwhile.

He's trying to do some good.

With trade, there's mutual interdependency and mutual gain between parties.

The taxes will be 153,000.

War does have its benefits...

People tend to place a much higher value on losses than on gains.

I'm not a charity commissioner.

But again, fun is not enough.