Most of us are familiar with the infamous Enron scandal
and here is what I'm guessing most people know about it.
The company cooked the books and pull off some shady accounting tricks
They were caught
and now cease to exist as a result.
But this is a very thin understanding of the subject
There was so much stuff that went down I can't even do it justice
in a short video like this.
If you wanna become an expert on it, theres a movie I can recommend.
It's called "Enron: the Smartest Guys in the Room".
It's nearly two hours about the scandal
and honestly I think that's even rushing it.
The entire "ordeal" is so complicated
that there can easily be an entire college course centered around it
and that course would be for the advanced students.
Wouldn't it be great
If someone created a youtube video that
concisely explained it in a way that is both entertaining and easy to understand?
Enron formed trough a merger in 1985
between two energy companies.
That's what Enron was by the way, an energy company.
When I say that it's a huge simplification
because Enron was envolved in so many things, in complex ways
that the average person didn't even come close to understanding
exactly what the company did.
It was founded by a man named Ken Lay.
You may want to remember that name.
Now let's fast forward around to the year 2000.
It was a fantastic company and very attractive for investors.
At the time they were thought of as being
one of the world leader in business.
I would say it's like how a few companies like
Apple or Google today, but that's not even close
to how amazing Enron was.
They were making money and growing at a rate that no-one had ever seen before
So here, i'll pretend to be a financial advisor helping you decided which stock you may want to buy
Here we go
Ive looked over all the numbers and I strongly advise you
to invest in Enron.
The one with the fastest growing and most respected companies around today
I'll just show you a few numbers to support my advise
As a financial advisor, I look at companies revenue,
debts and past stock trends
Heres enron's revenue over the past five years
just look at that growth its quicker than I'd ever seen
I also checked out their debt an its very reasonable
Compared to their equity