Depreciation vs Amortization Explained Simply

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0:00 Intro
0:36 Depreciation
3:38 Amortization
4:30 Chipotle Example

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👨‍💼Brian Stoffel is a writer, investor, YouTuber, and financial educator. He's a teacher at heart. Brian has been investing for over a decade and has written over 4,000 articles for The Motley Fool. Brian plans his life and his investments around “antifragile” principles.

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[PascalH]

You are embarrassing all of those so called financial experts and financial gurus! Keep up the great work

[bufweix]

Never stop uploading these videos, sir. God bless you, the parents that gave birth to you, your wife whom makes your home, and your kids who will be smart and be kind to teach others!

[vrafa]

Quality of content is amazing! The video format is also great ❤ love the images supporting the content! I see improvements anytime you issued a new video! Keep up the great work.

[theanimator]

Thanks Brian. It is amazing how you are contributing to the community. Love your unique approach to investors online.

[hectorcortes]

very useful material! thanks! and so easy to understand... totally recommendable

[EmanueleScoccia-xlkb]

Love it! Sadly, i suppose this kind of video make less visualizations, but their are truly remarkable and useful for the people that want to really learn

[Teja]

Recently found your channel through YouTube Shorts and my god what an absolute goldmine!!!

I wanted to learn about stocks and how to read statements recently and lo and behold YouTube Gods have blessed me!!!

Also checked out your book tooo keep up the fantastic work!!!

I love your shorts too btw so compact and informative 😊

[robertmariano]

After watching this video, I realized that M.C. Hammer wrote a song about amortization, U Can't Touch This

[Nemi]

3:21 You missed this as an opportunity to describe that the $1000 comes OFF the fixed tangible asset value on the balance sheet.

[Somaaliman]

This is whole college semester course in 10 min ❤. Thank you

[gamrman]

3:13 my OCD is killing me
the dots on the graph aren't lined up perfectly 😬

[stefanogattoCH]

Let's take the Coffee Shop example. It's a tangible fixed asset, right? So are they going to depreciate it? At what percentage per year? What about the land component of it? Can we depreciate it as well, or not at all? Are there differences between countries (I am based in Switzerland)?

[exuconton]

So, you write off the book value of brand name linearly over 15 years. What is the book value of Amazon or Tesla then?

[whitevanman]

So what is the difference between amortization for FORD and MFST?

[christen]

What I don't get is the numbers don't appear to add up precisely. And isn't that what double entry bookkeeping/accounting is suppose to project? I mean, balance to the nearest nickel? You buy new PPE at $560, 731. You depreciate at $319, 394. Difference is $241, 337. Add that to the ending Balance Sheet of 31 Dec 22 of $1, 951, 147 and you get $2, 192, 484, not $2, 170, 038. Trying NOT to be the star pupil at the Beneke Fabricators IRS skool of "you got some 'splainin' to do". I took basic accounting in 1969 before calculators (still have my slide rule tho)

[kebugcheck]

Why do this instead of just marking the purchase of coffee maker as expense and getting full benefit that very year.