I Don't Understand Robert Kiyosaki

[ENP]

He says you only make a profit when you buy.

Example, cashflow positive rental, dividends from shares.

But then he advises people to invest in options/futures and silver. These don't provide cashflow do they? Aren't they just speculating whether the price will go up or down and sell later on?

Can anyone explain?

Thanks.

[Mark_B]

Firstly, be aware that common criticism of Kiyosaki are that his books are (a) repetitive, and (b) offer little in the way of tangible advice.

I know someone who was an award winning journalist in a former life and she interviewed him - she told me that at the end of her interview her several pages of notes really only boiled down to the one page of decent material (he kept saying the same stuff in different ways and couldn't really elaborate on any of it).

As to "making a profit when you buy" -

It really comes down to buying well (whatever you buy, be it shares, properties, silver, etc) - or a cryptic way of the old adage "buy low, sell high" (which of course is far easier said than done).

Notwithstanding what I said before about Kiyosaki peddling the same stuff under different titles (and occasionally in a confusing fashion) imho he does provide an excellent starting point for complete newbie investors.

But once you've got the basic gist of his message, my advice is to ditch RDPD.

Also bear in mind that Kiyosaki isn't so much of an investing genius as he is a marketing one - he created a strong brand (RDPD) and he has milked it very well. For every dollar he has made with his investments, I suspect he has made many more writing about investment.

[ENP]

Yes the last 3-4 of his recent books that I've read it just says the same thing...

- currency vs gold standard
- house isn't an asset
- money in vs out of your pocket
- mutual funds are bad
- invest in different asset classes
- cashflow cashflow cashflow

They RDPD books don't really give you advice as to what to do. They are an easy read however, unlike some more technical books which is why I quite like them.

[Mark_B]

all imho:

- currency vs gold standard (the issue isn't the currency or gold standard, it is fractional banking)
- house isn't an asset (I disagree)
- money in vs out of your pocket (savings - so simple, yet so hard for most people)
- mutual funds are bad (in NZ these are unit trusts. In some cases they have their uses)
- invest in different asset classes (important, but more so as people age)
- cashflow cashflow cashflow (important)

[ENP]

So when he says make a profit when you buy. Is this thrown out the window with silver, oil, etc.

Or is this because he's betting against inflation, etc so it's all good.

[donna]

His latest book provides exactly the way to get 'cash flow' in and I have found the book of huge value to me and my business. The book is the 'conspiracy of the rich...8 new rules of money'.

He has over 1400 Real Estate properties (him and his wife) so I would say he is not just a marketing chap - he has a 'marketing business' but he also has other businesses and quite an impressive investment property portfolio.

I haven't read all his books - most are not written by him. The Rich Dad, Poor Dad and his latest book are my favourites and I am putting his 'how to get cash flow in' strategy to good use.

Cheers,

Donna

[ENP]

I just got that one out of the library Donna but my girlfriend snatched it off me before I could start reading it. It's the one with the first chapter can Obama save the world right?

I'm reading One Up On Wall St at present.

[Mark_B]

If I had sold a bazillion copies of the same piece of work published under various titles I'd want somewhere to put the money too (his property portfolio).

The RichDadPoorDad concept was (and still is) brilliant marketing.

[american_psycho]

Kiyosaki strongly advised against buying property towards the end of the American bubble (2005) - the fundamentals were too weak, too much leverage, relying on the greater fool etc. The bubble was about to pop. It did.

Pretty much the same mantra that the rest of the property naysayers are saying in New Zealand. So many morons to educate unfortunately. The only reason I continue to post on this board is I hope to get through to one or two people (who may have kids) who can sell before they lose the lot in the coming crash.

Below is Kiyosaki's warning of the US crash.

http://www.propertytalk.com/forum/showthread.php?t=3968

[ozharp]

Hi AP.

I would be very grateful if you could state succinctly what you see happening with real estate in NZ and what time frame you see this happening in. I believe that the only reason Australia's economy remains strong is because of the demand for resources from China, and if that dries up then Australia goes down the economic gurglar, and since John Key said on a recent visit here that a downturn in Australia's economy would be a disaster for NZ then NZ would be dragged down with them.

[ENP]

I'm just playing cashflow 101/202 and basically what I do is go for capital gains first and then for cashflow once I've got some money.

What are real life examples of building up that initial capital for the big cashflow deals?

[Aston]

What are real life examples of building up that initial capital for the big cashflow deals?

At grass roots level ENP it is savings... always pay yourself first. Saving becomes addictive, I am still doing it and I always will.

I stress to all young people the importance of having a strong savings regime.

So many young people say that they can't afford to save but in reality they can't afford not to save.

[ENP]

So for the money I set aside I should just put it into a bank and let inflation eat away at it and opportunities to pass me by?

I'm invested $6k into stocks now and looking into silver but I think it's a bad time to get into both of those.

[Aston]

ENP, you've probably already talked about this but how old are you and what is your approx current salary and are you living with parents?

I appreciate that these are all personal questions and you don't have to answer but it will help me, and others, to get a better idea of your current position.

[ENP]

21.
$40,000
Yes

Have $5000 emergency fund. $6000 in Ryman Health shares.
Save $200-250 per week from my salary and am not sure what to do with it in these volatile economies.