Leverage.

Now what's our mantra of this day and age I wonder?

Central Europe, unsecured.

Word is that davis' fund has taken some big hits on mortgagebacked securities.

And you end up with a mortgage backed security.

If you're an engineer, you have to create something that's unique and valuable.

And this is what you probably read some articles about, these hedge funds with these computer models to value their mortgage backed securities.

You're gonna make more money if a crop fails.

I wonder if it's worth it.

Was it a correct decision?

I have a whole video on mortgage backed securities.

But, actually, it's suddenly come to me after years working in the business, that what we create in advertising, which is intangible value you might call it perceived value, you might call it badge value, subjective value, intangible value of some kind gets rather a bad rap.

But the present value, what does that mean?

Not so in Italy.

In the middle of the routine, because stored memory is precious, they stored things in 16 bit numbers.

We would create incentives for securitization.

I have 4 billion in residential CDOs, collateralized debt obligations.

To us it seemed worth protecting.

How is she gonna be valuable?

Let me tell you about a truly magical algorithm called value iteration.

A book worth reading is worth reading twice.

We just made it explicit.

So these shares each of these one million shares this is a mortgage backed security.

And my brother and I were raised with all that you really need

Worth zilch.

It's worth twice as much.

It is.

So just in kind of our everyday personal finance world, your mortgage is actually secured debt.

And this value, this is called a well in general, whenever you're valuing anything, it's called a valuation.

What's also interesting, if you look at products that have a high component of what you might call messaging value, a high component of intangible value, versus their intrinsic value

If a thing is worth doing it is worth doing badly.

We'll borrow some money on the house.

We'll use the house as collateral so we can borrow some money.

I think it's a distraction.

I'm not so sure you want the maintenance and safety department. The fire department might be a better bet.

Next thing I learned from Steve Jobs is

stored

They are often quite egalitarian.

And I'll do a bunch of videos on margins in the future.

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

So this is real estate, or building.

This is 5 million.

But, are we comfortable with that?

The next element is the fact that

What values do you use to judge?