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

I guess you could say non cash assets, right?

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

And so, it was really those lessons that made me decide to build Acumen Fund about six years ago.

At COALergy we view climate change as a very serious threat to our business.

So they just collect the big cash.

More useful than a solid gold surgeon, but, still, it's a fairly big capital investment.

Just about what we got here in the emergency fund.

Because it has no liabilities, it has no debt, and its assets are equal to its equity.

Illiquidity is a different situation.

And you might not even be able to find anyone to buy it a year later.

If this is worth 2 billion instead of 4 billion, then I have zero equity.

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

Very inspiring.

Now, there's an incredible amount of resources that are required to keep these things separated, but also to replicate these things, to replicate all of the functions that belong to the private.

How to integrate your sponsors?

I'll draw it a little bit bigger.

So this is just another visual representation that

My liabilities would be 145,000.

So you can say assets of the firm.

I'd like that a lot.

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

So, they gain independence from the sponsor, and start funding themselves.

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

Manage your personal finances

Seung Jo!

Leadership training in Google, for example, places a lot of emphasis on the inner qualities, such as self awareness, self mastery, empathy and compassion, because we believe that leadership begins with character.

And a lot of this comes together in a philosophy of change that I find really is powerful.

And they say, you know what?

I'm talking about the situation where you had Pete, and Pete said

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

Well there are, in a few suburbs.

And so if you think about someone who has a lot of assets, but they're controlling it with very little equity, they have huge leverage.

It's a kind of very nice, sophisticated way how to economically strangle a daily newspaper.

And all of that is, essentially, just consumption that just destroys wealth.

liabilities plus equity is equal to assets.

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

...I'm printing the money so that I can buy particular assets,

But they are extremely efficient organizations.

Well their intention was to take these home equity loans and put that money to work, invest it in some way.

And so that cash ended up here.

liabilities.

Moreover, he invites us to look under the hood.

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

And why is that?