The Five Phases of Becoming a Sophisticated Investor

Rich dad broke my development program into five distinct phases, which I have organized into phases, lessons, and chapters. The phases are:

1. Are You Mentally Prepared to Be an Investor?

2. What Type of Investor Do You Want to Become?

3. How Do You Build a Strong Business?

4. Who Is the Sophisticated Investor?

5. Giving It Back.

This book is written as a guide. It will not give you specific answers. The purpose of this book is to help you understand what questions to ask. And if this book does that, it has done its job. Rich dad said, "You cannot teach someone to be a sophisticated investor. But a person can learn to become a sophisticated investor. It's like learning to ride a bicycle. I cannot teach you to ride a bicycle, but you can learn to ride a bicycle. Learning to ride a bicycle requires risk, trial and error, and proper guidance. The same is true with investing. If you do not want to take risks, then you're saying you do not want to learn. And if you do not want to learn, then I cannot teach you."

If you're looking for a book on hot investment tips, or how to get rich quick, or the secret investment formula of the rich, this book is not for you. This book is really about learning more than investing. It is written for people who are students of investing, students who seek their own path to wealth rather than look for the easy road to wealth.

This book is about rich dad's five phases of development, the five phases that he went through and that I am currently going through. If you are a student of great wealth, you may notice while reading this book that rich dad's five phases are the same five phases that the richest business people and investors in the world went through in order to become very, very rich. Bill Gates, founder of Microsoft; Warren Buffet, America's richest investor; and Thomas Edison, founder of General Electric, all went through these five phases. They are the same five phases that the young new millionaires and billionaires of the Internet or the "dot com"

generation are currently going through while still in their twenties and thirties. The only difference is that because of the Information Age, these young people went through the same phases faster . . . and maybe so can you.

Business Brain

Business Brain

Among the hardest transitions for individuals is to move from the employee to the entrepreneur mentality. The idea of getting on your own, getting your own business is fantastic. It's the desire of a lot of individuals to leave their jobs and get to be successful business owners.

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