Sharons Notes

The qualified investors, both fundamental and technical, are analyzing a company from the outside. They are deciding whether to become buying shareholders. Many very successful investors are happy operating as qualified investors. With the proper education and financial advice, many qualified investors can become millionaires. They are investing in businesses developed and run by others. Because they have studied and gained the financial education, they are able to analyze the company from its...

Are You Mentally Prepared to Be an Investor

Rich dad often said, Money will be anything you want it to be. What he meant was that money comes from our minds, our thoughts. If a person says, Money is hard to get, it will probably be hard to get. If a person says, Oh I'll never be rich, or It's really hard to get rich, it will probably be true for that person. If a person says, The only way to get rich is to work hard, then that person will probably work hard. If the person says, If I had a lot of money, I would put it in the bank because...

What Seems Secure Is Really Risky

As an adult, I now see what my rich dad saw. Today, what I think is secure most people think is risky. The following are some of the differences. AVERAGE INVESTOR SOPHISTICATED INVESTOR Wants nothing in their name. Uses corporate entities. Often personal residence and automobile are not in their Uses insurance as an investment product to hedge against exposed risk. Uses words such as covered, exposure Has both paper assets and hard assets such as real estate and precious metals. Precious metals...

Why the Rich Get Richer

When I was younger, my rich dad said to me, The rich get richer partly because they invest differently than others they invest in investments that are not offered to the poor and the middle class. Most importantly, however, they have a different educational background. If you have the education, you will always have plenty of money. Davidson points out that the dollar has lost 90 of its value in the last century. Being a cheap millionaire is therefore not enough. To qualify to invest in the...

Saving Is Not Investing

A sophisticated investor understands the difference between saving and investing. Let's look at the case of two friends, John and Terry, both of whom believe themselves to be sophisticated investors. John is a highly paid professional and invests the maximum in his 401(k) retirement plan at work. John is 42 and has 250,000 in his 401 (k) plan already because he has been adding to it for 11 years. There is no return, or cash flow, from it until he retires and then it will be fully taxable at his...

The Other Side of the Coin

Rich dad often said, It is through the expense column that the rich person sees the other side of the coin. Most people only see expenses as bad, events that make you poor. When you can see that expenses can make you richer, the other side of the coin begins to appear to you. He also said, Seeing through the expense column is like going through the looking glass as Alice did in Alice in Wonderland. Once Alice went through the looking glass, she saw this bizarre world that in many ways reflected...

Affording the Good Life

A recent article reinforces my rich dad's point of view. The article, Affording the Good Life in an Age of Change, was in the Strategic Investment Newsletter, published by James Dale Davidson and Lord William Rees-Mogg. These two men have also co-authored several best-selling books Blood in the Streets, The Great Reckoning, and The Sovereign Individual. These books have dramatically affected the way I invest and how I look to the future. Davidson is the founder of the National Taxpayers Union,...