228 of 239 people found the following review helpful
on May 2, 2001
I've read close to 60 books on Personal Finance, Investing, and How-To-Be-Rich-types and this one is one of the best I have read. I have enjoyed Robert Kiyosaki's other books, but this one is the best, in my opinion, because he reviews many of his principles from his previous books just in case this may be the first of his books that you are reading.
This is not a *HOW-TO* book on HOW to become wealthy or which steps to take to become wealthy. Like the author states, this book is about the INVESTOR, not specific strategies. To become truly wealthy you have to do two things. First, you NEED to change how you think, not just about money but about all areas of your life. Why go after riches if your marriage is in trouble or you don't spend enough time with your children? Secondly, you NEED to take different actions. If your last 5 years were miserable, then your next 5 years will be the same unless you DO something different. If at least 95% of the people in this country are not wealthy then you cannot do what 95% of people do. You have to do what the other 5% do; people WILL tell you you are crazy or what you are doing won't work. This happened to me and I am GLAD I did not listen to those people who still work at a job (I don't).
Most people do not Incorporate, most people do not invest in mutual funds and stocks correctly (they buy high and sell low), most people do not know how to buy real estaste, and most people know little about taxes, accounting, and personal finance. If one book was to be written about all those subjects in a general sense, it would still be thousands of pages long.
Robert's genius is that with his "Rich Dad/Poor Dad" metaphor, he gets the average reader to realize that it is not some magic formula or some great unattainable secret, but that it is our responsibility to go out and learn what the rich do and WHY they do it.
I never thought I would read a book about the Investor that would have given me this many new ideas. A must have for those who want to get out of the "rat race."
Beware the negative reviews regarding this book because they are written by people who "don't get it." You either "get it or you don't." Reviews written by people who have not read the book and have not been there are a waste of your time.
Like I said, I've been there, I own and have read this book twice already. People WILL put you down in obvious or subtle ways if you go for your dreams. Don't listen to the 95%, listen to the 5% that have made it.
Good luck and may all your dreams come true.
548 of 590 people found the following review helpful
on June 24, 2000
This book continues from where Kiyosaki left off in Cashflow Quadrant, his 2nd book in the trilogy (now complete with Rich Dad's Guide to Investing).
In his 1st book Rich Dad Poor Dad, Kiyosaki addressed the differences in mindsets between the Rich and the Poor. Then, in his 2nd book Cashflow Quadrant, he spoke on the 4 quadrants from which one can generate income. To be wealthy, Kiyosaki recommended that we learn to generate our incomes from the "B" (Business-owner) and "I" (Investor) quadrant as opposed to the "E" (Employee) and "S" (Self-employed) quadrant.
In his 3rd book Rich Dad's Guide to Investing, Kiyosaki tells how he got started in his investment journey, starting with nothing, and in fact at one stage, with a negative net worth. Most of us, having read his first 2 books, would have wondered if we could have embarked on our journey to become financially independent without much resource at hand. In this book, Kiyosaki shows how anyone can get started and how it does not take money to make money. He teaches how time is more important than money; how investing in one's self and getting an education and experience precedes excessive cash; how having a plan is more important than being in a hurry to make money.
This is not a book for those who want hot tips and quick fixes. This is a book on mindsets. Kiyosaki plants ideas and provides a road-map. The reader must take the first step and learn to navigate his/her own journey.
What I like about this book, is Kiyosaki's concept of being an Ultimate Investor, a "selling-investor". The Ultimate Investor creates deals and businesses that the public hunger for and are willing to pay a premium to acquire a share of. With the internet, it has never been easier to create businesses and deals which one can take public.
As in all his other books, Kiyosaki's book is worth reading again and again. I would also recommend that one reads Robert Allen's Multiple Streams of Income in conjunction with Kiyosaki's Rich Dad's Guide to Investing.
172 of 182 people found the following review helpful
on May 31, 2003
In this third of the of the RD/PD series Kiyosaki discusses investing. He shows how he went from a negative net worth to millions. He discusses the importance of having a plan. I like the fact that he emphasizes the importance of having a mission in your business. Kiyosaki also discusses the importance of having a safety net in your investment plan as a back up to the aggressive real estate, business and stock investing.
Good book and the best of the three in my opinion.
247 of 267 people found the following review helpful
on March 13, 2002
All of the books in the Rich Dad are excellent. I also suggest How to make nothing but money by DelDeotto,
163 of 176 people found the following review helpful
on November 10, 2003
I have read some of the negative articles and reviews here about Kiyosaki, but to me this man has mega credibility. HE WARNED US ABOUT MUTUAL FUNDS--AND HE WAS RIGHT!
He told us that real estate is the way to wealth and that is true also. He recommends network marketing as the perfect B-Quadrant business and that has also turned out to be true.
The man recommend small cap stocks and look at how they have performed. The guy knows his stuff, er, that is his Rich Dad knew his stuff and Kiyosaki is passing on that information updated for the times for all of us to benefit.
Thank you Robert for sharing. I for one am glad that I followed you investing advice and am not getting hammered by the current mutual fund scandal as some other people I know are. And I guess now we know who writes most of those negative 1 star reviews, don't we?
68 of 71 people found the following review helpful
on July 12, 2000
This book represents a profound mindshift.
There is nothing new here, and yet it is all new.
Like his other works, this one 'continues the saga' as he makes an accurate and therefore excruciatingly painful case for 1. Realizing the importance of financial education, 2. Understanding how the rich think about money, and 3. Accepting (and implementing) the simple but profound paradigm shift needed to achieve financial freedom.
But here Kiyosaki goes into detail about a concept and stategies which were only mentioned briefly in earlier works---investing like the rich...read 'how the rich manufacture money.'
His first book presented his startling mindshift, almost in parable form without a lot of detail.
His second work expounded on the dynamics of cashflow.
This latest work is an in depth treatment of the ways in which the rich---and by extrapolation you and me, if we employ the same devices---can go about creating money out of thin air. It is truly thought provoking.
Many books (about success and/or money) are written by someone, who themselves apears to be aspiring to make money by writing books. They are often people who really don't seem to know much more than you or me, or whose works are full of untested platitudes or which require skills so specialized that the rest of us are all but left out. All we can do is look on in awe. Few books are really written by one of the masters, revealing his/her secrets. This is one.
Some have criticized Kiyosaki's works for being wordy. They misunderstand him. It is a layering approach---looking at the same diamond from many many different angles, layering one level of depth on the next---because the really profound truths cannot be grasped on the first go 'round in the snappy style of newspaper copy.
The riddle is clear, while brevity confusing. What's clearly articulated is easily brushed over. "Sure, sure" we say, and rush on thinking we understand, when we really don't. The riddle, on the otherhand, causes us to stop and ponder.
So, if you buy no other book this year or next, this should be the one.
58 of 61 people found the following review helpful
on June 20, 2004
I have read many books on investing and picked the ears of mnay successful investors as well as so called experts. But aside from Peter Lynch's excellent books, I have never found so much powerful information as I did in Rich Dad's Guide to Investing.
Robert Kiyosaki and Sharon Lechter have produced another winner right where Rich Dad Poor Dad and Cashflow Quadrant left off. This is must reading for investors who want to make money, not just circulate it.
44 of 46 people found the following review helpful
on June 15, 2004
In this third book in the Rich Dad series, Robert Kiyosaki and Sharon Lechter reveal the basic rules of investing, including how to reduce investment risk and how to convert earned income into passive and portfolio income.
I'm glad I had this information circa March 2000. Great book. Tahnk you Robert, Sharon and thank you Rich Dad!
57 of 62 people found the following review helpful
on October 22, 2005
I actually enjoyed this book better than the first two in the series, Rich Dad Poor Dad and Cash Flow Quadrant. In Rich Dad's Guide to Investing, Robert Kiyosaki puts it all together and explains what it really takes to become wealthy.
For one, Kiyosaki explains the 90/10 philosophy. This is Rich Dad's version of the famous Paredo principle. In this case, Kiyosaki via rich dad explains that 90% of all investments are actually owned by only 10% of investors. Kiyosaki cites a Wall Street Journal article to support this.
Kiyosaki goes on to state that only 1% of Americans become financially independent here in the greatest country in the world. And he explains the reasons why they fail.
Carrying on what was revealed in the first two books, Robert Kiyosaki explains that most people have been following the wrong plan. They go to school, get a good education so they can get a good job and work 40 hours per week for 40 years and get a gold watch, that is if you haven't been downsized by that time and your company is still giving out gold watches by then.
Kiyosaki goes on with the 4 quadrants explained in book two, Cash Flow Quadrant and explains why the first quadrant, E-Employee is a surefire plan for financial suicide. Mr. Kiyosaki explains why this group is the most heavily taxed. Robert Kiyosaki goes on to explain that people in the E quadrant can start a small, homes based business, increase their income, build their skills while enjoying tax writeoffs and still keep their 9-5 J-O-B. And then Kiyosaki goes on to explain why those in the B-Quadrant pay the very least in taxes and why anyone, including you can enjoy the same tax benefits.
This book is primarily about investing and the fans of technical analysis, buy and hold, average down etc probably won't like this part. It's not about how to pick stocks. It is about the mentality to become rich which technical analysis can never teach you.
Kiyosaki goes on to explain that 401 (k) plans are in reality savings plans as are most mutual funds and typical plans that so many people mispronounce investments. According to Kiyosaki, the wealthy buy and sell, they do not buy and hold. The old industrial mentality of buy and hold, dollar cost average, buy blue chips stocks and so on is outmoded. Today you buy and then sell.
Robert Kiyosaki then goes into his 3 step piggy bank concept of putting away 10% each in a safe savings plan, a investment (mad money) plan and then finally tithing. Interesting that Kiyosaki mentions here that his poor dad (his real dad) didn't tithe because he said he couldn't afford to but his rich dad (his friends dad and Kiyosaki's mentor) started tithing when he had nothing and his income built from that point on. This part is straight out of the Richest Man in Bablyon by George Clason and is excellent advice.
Kiyosaki also beats to death his real estate philosophy of looking at least 100 houses before you buy one. He also states that nothing down deals are the worst deals for someone with no money. Kiyosaki goes on to say that it took him 40 years to learn how to become a successful investor and most people are just too impatient.
Finally, Kiyosaki also discusses owning a business as an investment again with the intent to create and then sell as he did. Kiyosaki discusses the difference the self employed and a business owner. Self employed sees it small, like owning one business i.e. one hamburger stand. A business person with a real business mind is more like Roy Croc and owns a franchise--big mentality=big picture.
Kiyosaki also goes onto say that it is easier today than ever before to become rich and cites people like Michael Dell who became a billionaire in less than 6 years.
Network marketing is again mentioned as a vehicle for creating wealth especially for those in the E category. You can start a business in your spare time with little investment, get training and move to the B-Quadrant very rapidly.
Overall, a great book by Kiyosaki and far better than the first two which I also gave five star ratings to. I understand that a lot of people disagree with Kiyosaki and that is probably why they are in the 90% who only own 10% of investments, are happy with their J-O-B's and mispronounce their 401 (k) and other savings plans as investments.
86 of 96 people found the following review helpful
As in Rich Dad, Poor Dad, this book has the delightful story line of advice from the father of a friend who became a very wealthy man before his death -- leaving his family well set financially for 100 years! I think it's that base in reality that makes these books so interesting.
One of the best ways to learn is to have a successful mentor who will guide us through the key challenges of getting started. This book is designed to duplicate the experiences that the author had his his rich Dad. For example, the key questions that rich Dad asked him are at the end of each section for you to answer for yourself. I found my answers to be revealing, even though I have been through a lot of similar sets of questions. Well done!
The story line picks up after the author is coming out of the Marines in his twenties to find his boyhood friend already wealthy from his own efforts.
The financial advice parts of the book are tied into helping you pick up a meaningful financial plan. You begin by deciding what you want money to do for you. That's an excellent thing to do. Some want security. Some want more income. Others want substantial wealth that keeps growing. You should decide. Some books make the mistake of pushing you to choose a goal that really isn't what you want. Rather than push you in a particular direction, the book emphasizes key principles (compound cash tax-free, create assets with your mind as well as with your money). The author notes that each of us has preferences that will take us in different directions for implementing whatever our goals are. I liked that approach a lot.
You will recognize a lot of the diagrams from Rich Dad, Poor Dad. But it is good advice, so it doesn't hurt to have the repetition. This part is fairly compact, so you can skim through it if you feel confident about the material.
This book would be outstanding as a gift for someone who is about to graduate from school and starting a first job, or for newly wedded people. It would be even more valuable if you would be a mentor for the person you give it to, like one of your children or grandchildren.
If you get to be good at this now, think how great it would be to be the rich Dad for your children and their friends. Now that's an irresistibly great goal!
Enjoy the riches you would like to have, for the reasons you would like to have them!