Geddes and Jennifer Costanza for proofing and editing.
Read The Book That Started It All
Robert Kiyosaki has challenged and changed the way tens of millions of people around the world think about money. With perspectives that often contradict conventional wisdom, Robert has earned a reputation for straight talk, irreverence and courage. He is regarded worldwide as a passionate advocate for financial education.
Rich Dad Poor Dad will...
• Explode the myth that you need to earn a high income to become rich
• Challenge the belief that your house is an asset
• Show parents why they can’t rely on the school system to teach their kids about money
• Define once and for all an asset and a liability
• Teach you what to teach your kids about money for their future financial success
Rich Dad Poor Dad — The #1 Personal Finance Book of All Time!
Order your copy at richdad.com today!
Contents
Become a Great Investor by Becoming a Great Student
Paper Assets in Your Wealth Plan
Introducing the 4 Pillars of Investing
Pillar 1: Fundamental Analysis
by Robert Kiyosaki
Many people believe investing is risky. So they turn their money over to an expert and hope that expert really cares about their money.
That is beyond risky. In today’s financial environment, it’s suicidal.
Between 1987 and 2006, investing was less risky. Whenever the stock or real estate market got into trouble, Alan Greenspan, the Chairman of the Federal Reserve, would bail out the speculators. It was not long before the public began to believe that investing in stocks and real estate was a guaranteed path to riches.
In October of 2007, the stock market hit an all-time high at over 14,000 and then crashed, bringing down the global economy. Bear Sterns and Lehman Brothers, pillars of the investment community, disappeared. Merrill Lynch, the stock brokerage firm that millions had entrusted their money to, went bankrupt.
In 2008, the new Federal Reserve Board Chairman, Ben Bernanke, began cutting interest rates all the way to zero, hoping to prevent the new Depression. He then began creating money out of thin air.
Who Do You Trust?
It seems incomprehensible to me that people trust their money, their hopes, and their dreams with those who have run the financial industry into the ground. How can they do that? How anyone can trust people who were paid million-dollar bonuses (rather than being fired) is beyond me.
Believing that these professionals, many of whom earn far more than you or me, care more about your money than you do, is delusional.
This is why I am thrilled and excited about this book by Andy Tanner. And his timing couldn’t be better. If you know that it is time for you to take control of your financial future, this book is for you.
CASHFLOW Games
In 1996, my wife Kim and I launched our financial education board game CASHFLOW® 101. CASHFLOW101 is also known as “fundamental investing.” Warren Buffett is probably the most well-known of all fundamental investors.
We created the game to help people who know it’s time to take care of their own money.
A few years later, we released CASHFLOW 202, which is known as “technical investing.” Technical investing is investing based upon the market trends, the ups and downs of markets. One of the most successful technical investors is George Soros.
Some investors are exclusively fundamental investors. They look at the financial statement of a business, often investing for the long term because they believe in the future of the business. Some investors are exclusively technical investors. They could care less about the strength or weakness of the business. All they care about is the mood, emotions, or sentiment of the market. For example, Apple was the darling of the stock market for years. Then suddenly, market sentiment changed and—although Apple had great fundamentals, great products, and over a billion dollars in cash—the price of Apple shares plunged. Investors who bought stock based upon Apple’s strong fundamentals lost.
Smart investors invest based upon both fundamental and technical input. This is why Andy’s book is a great book. Andy draws on both fundamental and technical insights before making his investing decisions. I know because I call Andy for his guidance before I invest my money.
And not only is Andy a great investor, he is a great teacher…which means I learn a lot every time I seek Andy’s guidance.
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