The Ultimate Investor

So the question remains, how does a person like Bill Gates become the richest businessperson in the world in his thirties Or how does Warren Buffet become the richest investor in America Both men came from middle-class families so they were not handed the keys to the family vault. Yet, without great family wealth behind them, they rocketed to the apex of wealth within a span of a few years. How They did it how many of the ultra-rich have done so in the past and will be doing so in the future....

Grow Up

In Investor Lesson 1, which was the importance of choice, there were three financial core value choices offered. They were These are very important personal choices and should not be taken lightly. In 1973, when I returned from the Vietnam War, I was faced with these choices. When rich dad discussed my option of taking a job with the airlines as a pilot, he said, A job with the airlines may not be that secure. I suspect that they will be having a rough time in the next few years. Yet, if you...

The 9010 Riddle

In February of the year 2000, I was working with a group of very bright graduate students at Thunderbird University, The American School of International Management. During the three hour session I asked one of the young students, What is your investment plan Without hesitation he replied, When I graduate I will find a job that pays me at least 150,000 a year and begin putting aside at least 20,000 a year to buy investments. I thanked him for his willingness to share his plan with me. Then I...

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,...

Do You Want to Be More than an Average Investor

This book is much more than just a book about investing, hot tips, and magic formulas. One of the main purposes for writing it is to offer you the opportunity to gain a different point of view on the subject of investing. It begins with me returning from Vietnam in 1973 and preparing myself to begin investing as a rich investor. In 1973, rich dad began teaching me how to acquire the same financial power he possessed, a power I first became aware of at the age of 12. While standing on the sandy...