So a lot of people immediately will figure out the Price to

It's just a faster way of saying

So let me switch colors just to ease the monotony.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

looks neutral.

You're making 10 , and that's just to connect the dots.

Maybe it goes to 2 in 2010.

So in 2013 you'll be making 16.

But in the last four years,

But this could happen.

Uh, when I started farming,

This is 2009 estimates.

That was a bit of a diversion.

700 rads per shot. (Laughter)

We tried to persuade him.

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

We now apply Bayes rule.

And you're going to pay a lower Price to Earnings ratio if the company isn't growing.

Why wouldn't I just pour all of my money?

If I'm paying 10 today for 2 of earnings in 2009, the Price to Earnings of 5 for Company A.

The motions don't move at all, move right, move down, move down, and move right again.

If it's growing 100 a year for 20 years, this is actually a very good deal.

One is, you could kind of flip this.

And, so we'll try to broaden the base over time.

What happens after this? The ventricles are full of blood and let's say they squeeze.

I could always use some protection.

My grandfather still endeavors to absorb new ideas.

Today, there are 2.3 million.

And let's say Company B made 5 per share. 5 EPS, Earnings Per Share.

It's probable. We're gonna try to save her arm.

And if you want to look at earnings per share, EPS, is this number divided by the number of shares was 0.35.

We got rid of all the useless things like engines and transmissions.

We didn't say we're going to send a man 20 percent to the moon.

Price to Earnings ratio.

They want us to fit in even better.

Then I just normalize.

Are you with me?

Divided by 0.35.

Now, in Texas, we believe in the rugged individual.

And that would happen very quickly in today's public markets.

So based on that, this looks cheaper.

Part of the income for his farm.

if then the rewards carrots and sticks , outstanding!

It takes about 40 minutes to print, and about four to six hours later you see the muscle cells contract.

As I say, it's a good day for the citizens of Albuquerque when we can put this big a dent in the local drug trade.