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Rich Dad Guide To Investing Review
Friday, May 27, 2016
Thursday, October 8, 2015
Book Review of Rich Dad Guide To Investing by Me
This is the third book Robert Kiyosaki wrote
in his hugely popular Rich Dad's series after Rich Dad Poor Dad and Rich Dad's
Cashflow quadrant. Robert's casual style of narration makes it both enjoyable
and easy to digest the close to 400 page book. I took about six weeks to finish
reading the book.
This book focuses more on the B-I side of the quadrant as well as the B-I Triangle. To become rich, we have to be both an investor and a business owner on the B and I side of his cashflow quadrant.
To be a really great investor is to become an ultimate investor. A level 5-6 investor. A person who invests from the inside of the company, takes it public by selling the shares to outside investor.
Robert explains all the components of his B-I triangle, which Rich Dad taught him, to build a strong business. Each component takes up one chapter. You can use the B-I triangle to assess the health of any company or business. If the company or business is not doing well, you can be sure that one component of the B-I triangle is not there or is weak.
Although Robert gives very clear explanation to every concept and made recommendations, however you will find them open-ended, leaving you to figure out what is best for your own financial future.
These are some of the many lessons that you can pick up from the book:
- The various investor controls
- Different level of investors e.g. accredited, sophisticated.
- How to increase financial intelligence.
- The need to have 3 financial plans. One to be secure, one to be comfortable and one to be rich.
- Understand financial statements.
- The 90/10 rule of money.
- The tax benefits enjoyed by a business owner compared to an employee and self-employed.
- The difference between saving and investing.
- Determine both sides of any investment, i.e. the risk and reward.
- Living in the information age compared to the industrial age.
- What it takes and how fast to be a billionaire in the information age.
- and much much more...
I want to recommend this book to anybody who wants to be a better business owner and investor. It would be better if you had read the first two books as this book builds on the fundamentals of the two earlier books.
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