Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and Middle Class Do Not!
Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and Middle Class Do Not!
Rich Dad’s Guide to Investing is a guide to understanding the real earning power of money by learning some of the investing secrets of the wealthy.The rich are different from the rest of us, if for no other reason than U.S. tax and securities laws allow them to invest in ways that keep us from catching up to them. That’s why 90 percent of all corporate shares of stock are owned by 10 percent of the people. Kiyosaki believes it’s possible for anyone to move up into that 10 percent, but it takes a different view of investing than most people have: it takes a plan to be a successful investor. And a plan is more than simply buying and selling, or collecting “assets” that bring in no cash and are thus more akin to liabilities. The way most people invest, “they might as well be pushing a wheelbarrow in a circle,” he writes. A plan is “mechanical, automatic, and boring,” a formula for success that has worked historically for most of those who’ve used it. Kiyosaki’s “rich dad” (actually, the father of his best friend) tells him the simplest analogy is the game Monopoly: buy four green houses, trade them for one red hotel, and repeat until you become rich.
The overall message of Rich Dad’s Guide to Investing is that this is an abundant world, full of opportunity for the sophisticated investor. However, it sometimes takes a while to find this point. Much of the book is told in dialogues between young Kiyosaki and his rich dad, and these conversations can ramble. There are rewards for the careful reader–for example, in the middle of a section on the basic rules of investing, Kiyosaki’s rich dad compares investor education to toilet training: difficult at first but eventually automatic. But getting to these inspired metaphors means wading through a lot of repetitive dialogue. It’s a bit ironic that someone who advocates investor discipline should show so little as a writer. But by the end of the book, even the rambling starts to make sense. By the hundredth time you read that the rich don’t work for money, and that you don’t need money to make money, both concepts start to make sense. It still looks difficult to apply these ideas, but Rich Dad’s Guide to Investing certainly makes the case that they’ll work for anyone bold and smart enough to practice them. –Lou Schuler
User Ratings and Reviews
5 Stars I Love this Book!
This book was the read that finally kicked me into high gear into my true calling of Entrepreneurship and Investing….the light bulb finally went on!
It will take you to the level of the mindset of a Super-Star Investor…teach you how to think like the mega-wealthy do. And you will start to question yourself on what you really want from life…average mediocrity like the rest of society, or a life of abundance and prosperity.
Then the rest is up to you.
5 Stars His Best by far
I’ve read RD Guide to Investing 3 times now and it has helped me to make an average of 22% annually in the stock market. He does not pick stocks for you but rather tells you what to look for. There are a lot of gold nuggets in this book for those who are willing to read and learn.
3 Stars 400 Pages of a Few Simple Points
I enjoyed this book a great deal yet I still believe it only deserves 3 stars. The author gets only a few ideas though yet this book is 400 pages. He could have expressed his views and educated the reader just as much in only 200 pages or less. There was a lot of repeating but after reading three of his books you begin to realize that he does this to get his points across more than anything. Don’t get me wrong though, there are some interesting and educational tidbits scattered throughout the book that make it just worth reading. Out of the three books in the series I would say this is the most important; even though the most popular one is obviously Rich Dad, Poor Dad.
5 Stars Kiyosaki has done it again.
Regardless of whether you are interested in learning more about real estate investing, buying or selling a business, creating a second income or a new career or just general financial issues, you will find the advice you are looking for in RDPD and in the Rich Dad’s Advisors Series. For one, Kiyosaki explains the 90/10 philosophy. This is Rich Dad’s version of the famous Paretto principle. In this case, Kiyosaki via rich dad explains that 90% of all investments are actually owned by only 10% of investors. Kiyosaki cites a Wall Street Journal article to support this.
Study Edition books (including a DVD Title) you must add to your collection:
Think And Grow Rich: The Personal Study Edition
The Master Key System: The Personal Study Edition
Path To Prosperity - Mastery Of Destiny - Acres Of Diamonds: The Personal Study Edition
The Science of Getting Rich: The Movie - 2 Disk Set
4 Stars Not one of his best, but worth the read
I’ve read 3 of Robert’s books now and I still think his advice on investments is lacking a bit. I am in the investment business and some of his advice is simply not realistic or accurate. BUT, his main ideas and concepts are strong and useful. This isn’t my favorite book of his but it’s solid. Just take his investment advice in conjuction with others.
Filed under: Personal Finance Book Reviews