My friend Tom is an excellent stockbroker. He often says, "The sad thing is that nine out of ten investors do not make money." Tom goes on to explain that while these nine out of ten investors do not lose money, they just fail to make money.
Rich dad said a similar thing to me: "Most people who consider themselves investors make money one day and then give it back a week later. So they do not lose money, they simply fail to make money. Yet they consider themselves investors."
Years ago, rich dad explained to me that much of what people think is investing is really the Hollywood version of investing. The average person often has mental images of floor traders shouting buy/sell orders at the start of the trading day, or images of tycoons making millions of dollars in a single trade, or images of stock prices plummeting and investors diving out of tall office buildings. To rich dad, that was not investing.
I remember watching a program where Warren Buffet was being interviewed. During the course of the interview, I heard him say, "The only reason I go to the market is to see if someone is about to do something silly." Buffet went on to explain that he did not watch the pundits on TV or watch the ups and downs of share prices to gain his investing advice. In fact, his investing was actually done far away from all the noise and promotion of stock promoters and people who make money from so-called investment news.
Was this article helpful?
You already recognize that rich individuals think differently than middle class or poor individuals in every aspect of life. But particularly when it comes to money. That's why they're rich. Their selections and decisions just by nature bring about riches.